The impact of Brexit on the financial sector in London has been significant, with over 7,000 finance positions exiting the city for the European Union (EU) since the UK officially left the bloc on January 31, 2020.
The exodus of finance jobs from London to the EU has been driven by the loss of passporting rights, which allowed UK-based financial firms to operate freely across the EU. Without these rights, many firms have had to establish new offices in EU member states to continue serving their clients in the region.
According to a report by EY, Dublin has been the biggest beneficiary of the finance job exodus, with over 4,000 positions moving to the Irish capital. Frankfurt and Paris have also seen significant increases in finance jobs, with over 1,000 positions moving to each city.
The loss of finance jobs from London has been a blow to the city’s economy, which has long been a hub for the financial sector. However, some experts believe that the impact of Brexit on the financial sector may not be as severe as initially feared.
In a recent interview with CNBC, Michael Cole-Fontayn, Chairman of the Association for Financial Markets in Europe, said that while the loss of passporting rights was a significant challenge for the financial sector, many firms had already taken steps to mitigate the impact of Brexit.
“Many firms have already established new offices in the EU, and others have put contingency plans in place to ensure that they can continue to serve their clients in the region,” Cole-Fontayn said.
He added that the financial sector was “resilient” and would continue to adapt to the changing landscape of the industry.
Despite the challenges posed by Brexit, London remains a major financial center, with many firms choosing to maintain a presence in the city. The UK government has also taken steps to support the financial sector, including the introduction of a new visa scheme to attract international talent to the industry.
While the loss of finance jobs from London is a significant development, it is important to remember that the financial sector is constantly evolving. As the industry adapts to the challenges posed by Brexit, it is likely that new opportunities will emerge, and the sector will continue to play a vital role in the global economy.