Brexit Hit to London’s Financial Service Jobs Overstated: FT
Brexit’s hit to London’s financial services sector has been milder than predicted with international banks maintaining most of their staff since the 2016 referendum, according to a Financial Times survey of 24 lenders and asset managers.
Nine of the world’s largest money managers have ramped up hiring in the U.K. as their total combined headcount rose 35% over the period, the paper said. Twelve overseas-based banks that employed about 71,000 people in London five years ago have reduced positions to 65,000, according to the paper. Most of that decline came from broader restructuring at Credit Suisse Group AG, Deutsche Bank AG and Nomura Holdings Inc.
Brexit led to expectations of a mass exodus of finance workers from London as banks with U.K. hubs look set to lose their passporting rights from Jan. 1. Goldman Sachs Group Inc. has asked over 100 staff to move from London to other European cities in preparation for Brexit, while Morgan Stanley has shifted people to locations including Madrid and Milan.
Yet the departures have been far smaller and slower than some expected after the Brexit vote, with the pandemic delaying several banks’ plans this year. Think tank Bruegel said in 2018 that London could ultimately lose 10,000 banking jobs and 20,000 roles in the financial services industry while former London Stock Exchange Group Plc chief Xavier Rolet had warned the figure might reach 232,000.
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