B.According to a study, ritic financial companies have already relocated more than 7,500 jobs to the European Union because of Brexit. Numerous companies are also planning to move assets, the business consultancy EY announced on Thursday. According to her, there are 24 companies. Although they did not provide precise information, EY estimates the value at more than 1.2 trillion pounds (1.3 trillion euros).
Only recently it became known that the largest American bank JP Morgen is relocating assets of 200 billion euros to Frankfurt. Deutsche Bank has also already relocated one of its most important settlement centers for international securities transactions, together with several billion euros in assets, from London to the Main. The assets are required to provide regulatory protection for trading transactions.
Many jobs are also being created
The Brexit transition period ends on January 1, 2021. Three months before the end of the transition period, “companies are completing their preparations and continuing to relocate jobs and businesses to the EU,” says EY. Since the British vote to leave the European Union in June 2016, 44 UK-based companies have announced that they will be hiring new staff in the EU. More than 2,850 jobs were created in Frankfurt, Paris, Luxembourg or Dublin, around 400 this year alone.
The City of London has so far been a central financial center for the EU. The EU is therefore already making preparations to prevent market turbulence at the beginning of the year. Last week, for example, the EU Commission announced that it would allow British settlement houses for financial products such as derivatives to continue doing business on the EU market until mid-2022.
In the future, the access of the financial houses from Great Britain will depend on so-called equivalence decisions. With them, the EU Commission would decide from year to year whether the British rules for the financial sector still correspond to the European ones. Only then could British banks and finance houses continue to operate on the continent.