Hopefully the question of EU employees’ status will be taken off the table as soon as possible

29 March 2017

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Omar Ali, Managing Partner UK Financial Services, EY, comments:

"The UK, as the world's leading global financial services centre, relies on having access to the best people across the world. Many of the people who make UK financial services so successful are from Europe. Hopefully the question of the future status of current EU employees can now be taken off the table as soon as possible, leaving firms to focus on other areas of their Brexit planning - deciding on their structure, where they will play, how they will serve their customers and generate sufficient returns.

"Less than a third of financial services firms have set out their plans for Brexit publicly, but that's not to say the industry hasn't been preparing. There is realistically now only an 18-month timeframe to develop and implement a contingency option and so we will start to see more concrete action taken to move a relatively small number of teams and functions over the next six months. However, because of the strength and depth of the UK's financial service ecosystem, firms remain committed to the UK and won’t be looking to move more people or operations than they have to."

Statistics from The EY Brexit Tracker (last updated Friday 24 March)

The EY Brexit Tracker tracks the public statements made by 222 of the largest financial services companies with significant operations in the UK across wealth and asset management firms, investment and retail banks, private equity, insurance and FinTech. The tracker captures statements made on key issues across sub-sectors relating to staffing, domicile, financial impact, policy asks, product changes, remuneration and opportunities.

Operational Decisions

69% have not yet made any public statements about the impact which Brexit could have on their domicile or where their major operations and staff are located.

23% (53 out of 222) of the companies who have made a public announcement say they are actively moving some staff or part of their operations out of the UK, or that they are reviewing their domicile as a result of Brexit.

Based on analysis of the Annual Results Statements of FTSE 100 Banks (February 2017):

20 mentions of Brexit or the EU referendum in the recent annual results statements of the five banks in the FTSE100.

20% (1 out of 5) of FTSE 100 banks said that some of their staff will need to be relocated abroad as a result of Brexit. 

7% (16 out of 222) have proactively reaffirmed their commitment to keeping their operations in the UK.

18 (13% of companies tracked in those sectors) major banks, asset managers and insurers have opened or bolstered EU subsidiaries since the Referendum.

Financial Results

Based on analysis of the Annual Results Statements of FTSE 100 Banks (February 2017):

20 mentions of Brexit or the EU referendum in the recent annual results statements of the five banks in the FTSE100.

20% (1 out of 5) of FTSE 100 banks said that some of their staff will need to be relocated abroad as a result of Brexit.