Fintech Funding Slashed by Almost Half in 2022. Will 2023 Be Any Better?

Brexit Angst: UBS to Transfer up to $36 Billion out of the UK

by David Kimberley
  • The Swiss bank will transfer the assets to its Frankfurt-based subsidiary
Brexit Angst: UBS to Transfer up to $36 Billion out of the UK
Finance Magnates
Join our Telegram channel

Swiss banking giant UBS has been given the go-ahead to move up to 32 billion euros ($36.44 billion) out of the UK.

According to Reuters, Judge Alastair Norris said that the bank could transfer the assets, from its UK division to its Frankfurt-based German subsidiary, on March 1st.

The asset transfer comes as UBS attempts to ensure it will still have access to clients in the European Union as uncertainty surrounding Brexit continues.

In its most recent annual report, the Swiss bank said that it would also be considering moving 200 of its approximately 5,000-strong London-based team to Frankfurt.

The firm also said that it plans to merge its London subsidiary with the Frankfurt-based UBS Europe SE.

UBS not alone

UBS is not the first bank to have requested permission to transfer assets out of the UK because of Brexit.

Last week, Barclays was given the green light to transfer 190 billion euros ($216.24 billion) from the UK to its subsidiary in Ireland. The bank also said it would be doubling its staff numbers in Dublin from 150 to 300.

At the end of last year, the Royal Bank of Scotland also indicated that it would move a third of its investment banking funds, worth around 13 billion pounds ($16.84 billion), to its Dutch subsidiary.

After British parliamentarians rejected Prime Minister Theresa May's plans at the start of January, the UK looks increasingly likely to reach the March 29th deadline without a deal with the EU.

Tensions between the UK and the European body have been rising since then.

On Wednesday afternoon, Donald Tusk, the President of the European Council, said that Brexiters deserve "a special place in hell."

Swiss banking giant UBS has been given the go-ahead to move up to 32 billion euros ($36.44 billion) out of the UK.

According to Reuters, Judge Alastair Norris said that the bank could transfer the assets, from its UK division to its Frankfurt-based German subsidiary, on March 1st.

The asset transfer comes as UBS attempts to ensure it will still have access to clients in the European Union as uncertainty surrounding Brexit continues.

In its most recent annual report, the Swiss bank said that it would also be considering moving 200 of its approximately 5,000-strong London-based team to Frankfurt.

The firm also said that it plans to merge its London subsidiary with the Frankfurt-based UBS Europe SE.

UBS not alone

UBS is not the first bank to have requested permission to transfer assets out of the UK because of Brexit.

Last week, Barclays was given the green light to transfer 190 billion euros ($216.24 billion) from the UK to its subsidiary in Ireland. The bank also said it would be doubling its staff numbers in Dublin from 150 to 300.

At the end of last year, the Royal Bank of Scotland also indicated that it would move a third of its investment banking funds, worth around 13 billion pounds ($16.84 billion), to its Dutch subsidiary.

After British parliamentarians rejected Prime Minister Theresa May's plans at the start of January, the UK looks increasingly likely to reach the March 29th deadline without a deal with the EU.

Tensions between the UK and the European body have been rising since then.

On Wednesday afternoon, Donald Tusk, the President of the European Council, said that Brexiters deserve "a special place in hell."

!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|} !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}