Bankers hesitate to leave London

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The movement of bank interests from London to locations within the EU has hit a stumbling block: UK-based employees often don’t want to move.

According to a report by Bloomberg JP Morgan Chase, Goldman Sachs and Nomura Holdings have struggled to convince traders to relocate overseas, with Frankfurt being a particularly difficult city to attract.

However, the prevalence of Covid travel restrictions may also play a role in people’s caution.

Stéphane Rambosson, the London co-founder of Vici Advisory, an executive search firm, told Bloomberg: “I have cases of people moving to the continent and they are really not happy.

Workers who had children in school were particularly reluctant to relocate, the report said, while employees were also concerned about wages, career prospects and quality of life in destination cities.

The EU is pressuring banks to move operations to the bloc, as regulators, including the European Central Bank (ECB), urge lenders to manage the risks associated with EU clients to the bloc. inside the block. The ECB is currently reviewing the risk management configuration of banks across the EU.

London remains by far Europe’s leading financial center for now, but there has already been a large-scale transfer of assets to the continent and a flow of staff as financial institutions seek to increase their operations in d other European capitals and financial centers.

The director of Morgan Stanley in France said he expects the size of the company’s Paris office to double over the next two and a half years to around 300 people and that Deutsche Bank AG recently decided to move around 100 jobs to its London corporate banking unit. to cheaper destinations like Frankfurt and Dublin.

Frankfurt’s relative lack of popularity comes despite the fact that Goldman, JPMorgan and Nomura have set up European hubs in the German financial capital. Paris is a more popular potential destination for traders, although Covid travel restrictions on travel by Eurostar have tempered the appeal.

Rambosson told Bloomberg he expects the situation to change, citing attractive tax breaks offered by France and Italy and the growing number of senior positions located in Europe.

It is believed that as more assets leave the UK, the attractiveness of EU countries to bankers will increase.

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