Financial services job in London may be under threat after Brexit. This loss may be Dublin’s gain. That the view of senior UK policy-makers after last week’s shock Brexit result, including Mark Boleat, Head of Policy for the City of London Corporation.
Boleat has said that Ireland is an “attractive” choice for financial institutions, many of whom may look to relocate if the UK formally begins to withdraw from the European Union.
Financial services worth billions to the City
Loss of “passporting” right is one of the biggest threats facing the City. Passporting gives international banks regulated by City the right to conduct business across the EU, whatever the bank’s nationality. The UK Treasury estimates passporting has an operational value of £10 billion – the equivalent of 100,000 well paid jobs. London’s mayor Sadiq Khan has said that this loss would be a “disaster.”
Ireland offers an attractive alternative explains Boleat.
“Ireland is as close to the UK as it is possible to be – it speaks English and plays rugby – but it is not at the centre of the continent. You also have Paris, although there are always strikes there, Frankfurt and Amsterdam, which already has a nice niche.”
Should financial institutions relocate, Ireland will be competing with Paris, Frankfurt and Amsterdam. Companies are likely to move to where they already have operations. HSBC has stated plans to move 1,000 jobs from London to their Paris offices. Citigroup, and others, have been bolstering their Irish operations, and in some cases have been doing so since before the vote.