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