In a stark revelation that highlights the ongoing impact of Brexit on Britain's financial sector, the UK's top banking regulator has confirmed that more than 100 financial institutions have shifted substantial operations, assets, and staff overseas since the referendum.
The Prudential Regulation Authority (PRA), operating under the Bank of England, disclosed that companies have transferred approximately £900 billion in assets and relocated thousands of jobs to European Union hubs. This massive restructuring represents one of the most significant transformations in the City's history.
The Great Relocation: Where Are Firms Going?
Dublin has emerged as the most popular destination for fleeing financial services, with Luxembourg and Paris also attracting significant business. Frankfurt and Amsterdam have likewise benefited from what industry insiders are calling "the great Brexit relocation."
Sam Woods, chief executive of the PRA, emphasised that while the majority of moves have already occurred, the situation remains fluid. "We continue to see some activity," Woods stated, indicating that the exodus may not be complete.
Beyond Expectations: The Scale of Movement
The scale of relocation has surprised many observers, with the number of firms moving operations exceeding initial government and regulatory forecasts. The transferred £900 billion in assets represents a substantial portion of the UK's financial services sector, though officials note that the core of the industry remains in London.
This restructuring comes as financial institutions seek to maintain seamless access to EU markets following Britain's departure from the single market. Without equivalence decisions from Brussels granting UK firms access, companies have been forced to establish substantial operations within EU member states.
Looking Ahead: The Future of UK Financial Services
While the immediate wave of relocations may be slowing, the long-term implications for London's position as a global financial hub remain uncertain. The movement of assets and jobs represents not just a statistical change but a fundamental reshaping of Europe's financial landscape.
The Financial Conduct Authority has been working alongside the PRA to monitor these developments, with both regulators keen to maintain the UK's competitive edge while ensuring financial stability during this period of unprecedented change.
