Hard Brexit Adds to UK Financial Industry Woes with Job Losses Likely
by
Colin Firth
Reports estimate loss of around 40,000 banking jobs as banks look to leave the UK to find a new home.
To add to the doom and gloom that a hard Brexit is likely to bring to the financial industry, a study published by the Oliver Wyman group says that 40,000 bank jobs could leave the UK in the case of a hard Brexit.
Hard Brexit refers to the situation where the UK leaves the eurozone with no free access to the market. This is expected to affect the financial industry very deeply.
Some of the large banks and financial institutions might opt for a simple change in licensing by opting to get a license in the eurozone as well, while others might go for more wholesale changes that are likely to affect the services provided to both investors and institutions.
Large Banks Moving Out
Already we have seen many of the large banks move their branches from London to Frankfurt in anticipation of a hard Brexit and this is likely to result in the moving of thousands of employees, senior management and also building infrastructure. 35,000-40,000 jobs are likely going to be relocated, the report said.
The report also goes on to add that this shift in infrastructure and jobs is likely to require $30 - $50 billion in new investments, which would be a major overhead for the financial institutions. Also, the European Central Bank had made it clear that any license granted by it would have to meet the highest regulatory standards.
This means that any plans for banks and other financial institutions to open shell companies in the eurozone while continuing to book their exposure in London would not work and are likely to be deal with severely.
The procedures and structures become more and clearer as time goes on and as we move towards the actual exit of the UK. Also, financial institutions have to take into consideration new local taxes and other charges that they are likely to face in their new destinations.
They will also have to deal with the fragmented banking structure that is likely to result as they move out of the UK and into the eurozone. This adds to the uncertainty surrounding the Brexit process and its implications.
To add to the doom and gloom that a hard Brexit is likely to bring to the financial industry, a study published by the Oliver Wyman group says that 40,000 bank jobs could leave the UK in the case of a hard Brexit.
Hard Brexit refers to the situation where the UK leaves the eurozone with no free access to the market. This is expected to affect the financial industry very deeply.
Some of the large banks and financial institutions might opt for a simple change in licensing by opting to get a license in the eurozone as well, while others might go for more wholesale changes that are likely to affect the services provided to both investors and institutions.
Large Banks Moving Out
Already we have seen many of the large banks move their branches from London to Frankfurt in anticipation of a hard Brexit and this is likely to result in the moving of thousands of employees, senior management and also building infrastructure. 35,000-40,000 jobs are likely going to be relocated, the report said.
The report also goes on to add that this shift in infrastructure and jobs is likely to require $30 - $50 billion in new investments, which would be a major overhead for the financial institutions. Also, the European Central Bank had made it clear that any license granted by it would have to meet the highest regulatory standards.
This means that any plans for banks and other financial institutions to open shell companies in the eurozone while continuing to book their exposure in London would not work and are likely to be deal with severely.
The procedures and structures become more and clearer as time goes on and as we move towards the actual exit of the UK. Also, financial institutions have to take into consideration new local taxes and other charges that they are likely to face in their new destinations.
They will also have to deal with the fragmented banking structure that is likely to result as they move out of the UK and into the eurozone. This adds to the uncertainty surrounding the Brexit process and its implications.
BGC Group Secures Backing from Global Banks for New $600M Trading Platform
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
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20-22 MAY 2024
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Looking to expand your network in #Africa?
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Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
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