UK firms say Dublin is the top choice for Brexit-linked re­lo­ca­tion

Belfast Telegraph - Business Telegraph - - News - BY DONAL O’DONO­VAN

A TALLY of Uk-based firms re­veals Dublin is the most pop­u­lar choice for re­lo­ca­tion fol­low­ing Brexit, with 21 com­pa­nies out of 59 across fi­nan­cial ser­vices sec­tors hav­ing com­mit­ted to mov­ing staff or op­er­a­tions there.

The EY’S Brexit Tracker placed Frank­furt in Ger­many as the sec­ond most pop­u­lar des­ti­na­tion among com­pa­nies look­ing to re­lo­cate as a re­sult of the UK’S de­ci­sion to leave the EU.

The Ger­man fi­nan­cial hub has at­tracted 15 firms, in­clud­ing three banks, since June.

Lux­em­bourg, Paris, Mi­lan and Madrid have also picked up busi­ness.

While large banks mov­ing sig­nif­i­cant num­bers of staff are the most prized re­lo­ca­tions wins, the EY data is based on a wider sur­vey of 222 banks, as­set man­agers, pri­vate eq­uity firms, in­sur­ers and fin­tech firms.

Ire­land is well placed to pick up in­vest­ment, ob­served Neil Gib­son, chief econ­o­mist at EY Ire­land.

But he said firms won’t make their fi­nal de­ci­sions on how to re­spond to Brexit un­til the sit­u­a­tion over a deal be­comes clearer.

“The po­ten­tial for firms to ramp up their pres­ence de­pend­ing on the fi­nal deal agreed be­tween the EU and Bri­tain means that this could be just the be­gin­ning of a sig­nif­i­cant new chap­ter for Dublin’s fi­nan­cial sec­tor,” he said.

Cor­mac Mur­phy, EY’S bank­ing sec­tor leader in Ire­land, said that a par­tic­u­larly high reg­u­la­tory bar to en­try for banks, en­forced by the Cen­tral Bank of Ire­land, has not ex­tended to other fi­nan­cial ser­vices. “The sin­gle su­per­vi­sory mech­a­nism (SSM) and Cen­tral Bank of Ire­land (CBI) have been clear on the high bench­mark for bank­ing but we are not see­ing this read across from reg­u­la­tors into as­set man­age­ment and in­sur­ance,” he said.

Mean­while, former AIB chief ex­ec­u­tive David Duffy — who now heads UK lender CYBC — warned in an ar­ti­cle in Lon­don’s City AM news­pa­per that the UK’S fin­tech sec­tor needs to do more to “fend off the ad­vances of our Euro­pean neigh­bours”. Mr Duffy is pro­mot­ing the sec­tor as the UK govern­ment “fin­tech en­voy”.

Neil Gib­son of EY Ire­land

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