Ireland’s central bank has begun laying down plans to accommodate a large number of London-based financial services firms seeking to re-locate their operations to Dublin after Brexit, according to the Irish Times.
Gerry Cross, the bank’s director of policy and risk, said the bank is poised to help businesses “think constructively” about relocation after receiving interest from a significant number of firms.
London’s financial firms are waiting to see whether the UK will hang on to their passporting rights which allow them to trade freely across the EU. The cost of a so-called ‘hard Brexit’ to revenues in Britain’s financial services sector has been estimated to be as high as £38 billion ($47 billion) with up to 75,000 jobs in the firing line.
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Ireland’s Industrial Development Agency (IDA) has said that over 100 companies, many of whom are based in the City, have enquired about relocating to the country after Brexit. Standard Chartered, for example, is already considering a move into Dublin to retain its place in the European Union, as reported by Finance Magnates last month.
The bank has also moved to deny reports that Ireland was discouraging firms seeking to move investment banking or trading operations to Dublin because of regulatory concerns. Cyril Roux, the CBI’s deputy governor, commented: “We have not sought to dissuade any such entities from seeking authorisation nor are we planning to do so.”
Nevertheless, the bank has made clear that it does not want firms setting up small operations in Ireland just so they can access EU passporting rights.
They need to demonstrate that they have “proper business models, with convincing risk identification and management, suitable products, sound finances, and strong boards and executives” before gaining approval in Ireland.