Macron’s bid to bring UK banks to Paris, post Brexit
The French presidential candidate Emmanuel Macron’s bid to bring the UK’s banking industry to France is hardly a surprise.
We have been predicting a mass exodus of the financial sector from Britain since the EU referendum, last year.
When Article 50 is triggered next month, the UK’s two-year journey to exit the EU will begin and so will the mass exodus of FinTech’s from the UK, if the country is unable to negotiate a deal that includes EU pass-porting rights. In that case, many FinTechs regulated by the Financial Conduct Authority in the UK are likely to move to countries such as Luxemburg, Ireland and Malta, and indeed France, which will make it easy for FinTechs to apply for PI and e-money licenses. 2017, therefore, will be the year that marks the beginning of the FinTech exodus from the UK.
We as a company made an early decision last year to begin the process of relocating headquarters to Luxembourg in order to comply with EU regulations. This will cost us an additional £1m per year before the UK formally leaves the EU in having to maintain dual regulatory licences, setting up and running the Luxembourg office and recruiting staff. But this is now a necessary cost.