Deutsche: Brexit risk to up to 4,000 UK jobs
With Deutsche Bank contemplating moving 4,000 jobs from London to Europe after Brexit, we are seeing the mass exodus of the financial sector
Now Article 50 has been triggered, the UK’s exit from the EU has begun and so too has the mass exodus of FinTech’s from the UK due to uncertainty around negations on EU pass-porting rights. In the scenario where a deal can’t be struck with the EU, 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.