Brexit is just around the corner. While Theresa May is still yet to renegotiate a Brexit deal and the fate of the United Kingdom remains in limbo, financial institutions are preparing for the worst.
There has been warning after warning from financial regulators such as the European Securities and Markets Authority (ESMA) to firms within the UK and Europe to prepare for a so-called hard Brexit where no deal is reached.
Should this happen, if a firm that is based in the UK but wants to continue operating in the union, then they will need to have an office and license from one of the other 27 member states also.
This has seen banks and financial institutions open new offices around the European Union (EU) over the past couple of years, and the staff that is manning these new offices are mainly coming from London.
Earlier this week Bloomberg reported how the Bank of America would soon begin the process of moving approximately 400 staff (mostly from London) to its Paris office in the next few weeks, citing a person familiar with the matter.
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Goldman Sachs to open new EU offices ahead of Brexit
Goldman Sachs is also set to open new offices in the EU in the coming weeks in Milan and Stockholm. The Milan office will be able to fit 130 people, and the Stockholm office will have a seating capacity for 100. However, how many people end up in these offices depends on the outcome of the Brexit negotiations.
Furthermore, Goldman Sachs has managed to finalize its brokerage license in Frankfurt this month, with the firm set to move into a new office in the German city towards the end of this year.
As Finance Magnates previously reported the three top banks in France are also looking to move 500 staff from their London operations back to France. The majority of the relocated staff from BNP Paribas SA, Credit Agricole SA, and Societe Generale SA will be moved to Paris.
In November of 2018, Credit Agricole anticipated that it would relocate as many as 100 positions from its London office. The firm plans to move them to Paris and other cities within Europe.
If a hard Brexit occurs, BNP Paribas has said it will move 85-90 global-market employees out of London. Societe Generale, on the other hand, has repeatedly stated that it expects to move around 300 employees from Britain’s financial hub.