Ja­pan MUFG picks Am­s­ter­dam as post-Brexit EU base for se­cu­ri­ties

Kuwait Times - - BUSINESS -

Ja­panese mega­bank MUFG said yes­ter­day it de­cided to pick Am­s­ter­dam as a base for its EU se­cu­ri­ties op­er­a­tion by mov­ing some func­tions from Lon­don in prepa­ra­tion for Brexit.

Mit­subishi UFJ Se­cu­ri­ties Hold­ings has de­cided to ap­ply for a li­cense to es­tab­lish a new sub­sidiary in Am­s­ter­dam, MUFG said af­ter nar­row­ing down a list of fa­vorites, which also in­cluded Paris.

Bri­tain is at risk of los­ing the “pass­port­ing rights” fi­nan­cial firms use to deal with clients in the rest of the Euro­pean bloc. That, along with po­lit­i­cal un­cer­tainty sur­round­ing Brexit ne­go­ti­a­tions, has spurred for­eign com­pa­nies that have set up shop in Bri­tain, or es­tab­lished Euro­pean head­quar­ters there, to be­gin look­ing for al­ter­na­tive lo­ca­tions.

“The new sub­sidiary in Am­s­ter­dam will en­sure that the group can con­tinue to pro­vide th­ese ser­vices to its EU clients, even if the cross­bor­der pass­port is lost as a re­sult of Brexit,” it said in a state­ment. It was not im­me­di­ately known how many em­ploy­ees will move from Lon­don to Am­s­ter­dam.

The Fi­nan­cial Times has re­ported that MUFG has cho­sen Am­s­ter­dam, to where “hun­dreds of jobs” could be moved from among the 2,100 peo­ple the firm em­ploys in Lon­don. Other Ja­panese firms in­clud­ing No­mura Hold­ings, Daiwa Se­cu­ri­ties and Su­mit­omo Mit­sui Fi­nan­cial Group have said they are plan­ning to move their main EU bases from Lon­don to Frankfurt.

Bri­tain for­mally said in late March it will with­draw from the EU fol­low­ing a ref­er­en­dum to leave that sent shock­waves through the bloc and up­ended Bri­tish pol­i­tics. Ac­cord­ing to a sur­vey con­ducted by Teikoku Data­bank in 2016, nearly 1,400 Ja­panese com­pa­nies do busi­ness in Bri­tain. Of the to­tal, 159 firms are in the fi­nance and in­sur­ance sec­tors, it said. — AFP

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