JP Mor­gan shifts €200bn in as­sets from UK to Ger­many

The Daily Telegraph - Business - - Business - By Michael O’Dwyer and Rachel Mil­lard

JP MOR­GAN is mov­ing about €200bn (£184bn) of as­sets from the UK to Ger­many, with only a lit­tle over three months un­til the Brexit tran­si­tion pe­riod ends.

The Wall Street bank plans to fin­ish mov­ing as­sets to its Frank­furt-based sub­sidiary by the end of the year, Bloomberg re­ported.

Sep­a­rately, it emerged last night that JP Mor­gan is set to pay nearly $1bn (£785m) to set­tle in­ves­ti­ga­tions into al­leged mar­ket ma­nip­u­la­tion in the US.

Back on this side of the At­lantic, the shift in as­sets will make JP Mor­gan one of the big­gest banks in Ger­many, and could raise con­cerns that Lon­don’s po­si­tion as Europe’s top fi­nan­cial cen­tre will be weak­ened by Brexit.

In­ter­na­tional banks have been mov­ing as­sets and mak­ing changes to their op­er­a­tions to en­sure they can con­tinue to func­tion fully if there is no deal be­tween the UK and the EU on mar­ket ac­cess once the tran­si­tion pe­riod ends at the turn of the year.

How­ever, the num­ber of job losses in the City as a re­sult of Brexit has so far been lower than pre­vi­ously feared.

JP Mor­gan al­ready books trans­ac­tions for some of its Euro­pean clients through its Ger­man sub­sidiary. But is un­der­stood to be in­creas­ing the cap­i­tal in its Frank­furt en­tity in prepa­ra­tion for the end of the Brexit tran­si­tion.

It is un­der­stood that the bank plans to route more trans­ac­tions through Frank­furt from next year.

The changes will not have any bear­ing on jobs, a source close to the bank said. How­ever, about 200 of its 12,000 Lon­don staff were told last week to move to Euro­pean cities in­clud­ing Paris, Frank­furt, Mi­lan and Madrid.

Citi, UBS and Stan­dard Char­tered are among the fi­nan­cial in­sti­tu­tions that have ex­panded their Frank­furt op­er­a­tions ahead of the UK’s new trad­ing re­la­tion­ship with the EU. A spokesman for JP Mor­gan de­clined to com­ment.

Sep­a­rately, the Fi­nan­cial Con­duct Author­ity (FCA) launched a con­sul­ta­tion on how to reg­u­late fi­nan­cial ser­vices firms based in the Euro­pean Eco­nomic Area from next year.

More than 1,500 firms and about 600 funds have reg­is­tered un­der the UK’s tem­po­rary per­mis­sions regime. The watch­dog said it ex­pected the num­ber of in­ter­na­tional firms seek­ing au­tho­ri­sa­tion to in­crease fol­low­ing the tran­si­tion pe­riod. Si­mon Mor­ris, a fi­nan­cial ser­vices part­ner at law firm CMS, said: “This con­sul­ta­tion re­flects the FCA’s and the Gov­ern­ment’s ‘open door’ ap­proach and con­trasts with the EU’s in­creas­ingly pro­tec­tion­ist stance.”

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.