Banks in the UK restarting preparations for a no-deal Brexit

 

Banks in Britain are showing signs of restarting preparations for a no-deal Brexit after a lull in the shift of financial services jobs and capital from Britain to the European Union in the past few months, consultants EY said on Wednesday.

Banks, insurers and asset managers had prepared for a March 31 Brexit but departure was delayed to October 31. The prospect that Britain could leave the EU without a deal by the end of October has started to have an impact.

Many firms have been reluctant to make the final decision to move to the EU until they absolutely have to, though investment banks have already moved nearly 1,000 jobs to Europe, EY said.

It is not clear if Britain will secure an exit deal with Brussels to avoid a rupture in trade links for Britain’s financial services industry.

Financial firms based in Britain have disclosed 1.3 billion pounds in relocation costs, legal advice and contingency provisions, EY said. There is an additional 2.6 billion pounds for capital injections to scale up new non-UK headquarters.

Via Reuters