Preparing for change: how to get your recruitment right during Brexit

Financial institutions have already begun to brace themselves for change and are actively seeking new locations outside the UK. Passporting rights, which determine UK banks’ access to the EU’s single market, is one of the main areas of concern. The EU bank passport allows financial institutions in one EU country to provide services to clients in another EU country. Quite simply, UK based banks can access the financial markets and clients of at present, a 28-nation EU trading bloc. Uncertainty has been the root cause of banks preparing to relocate to other EU destinations and it presents many challenges if that route is blocked.

Citigroup’s EMEA Boss James C. Cowles said: “A hard Brexit would require certain changes, including relocating certain client-facing roles to the EU from the UK, and the possible creation of a new broker-dealer entity within the EU.” 

Noonan, L. (2016). Citi warns staff to prepare for hard Brexit, The Financial Times, accessed 24 October 2017, https://www.ft.com/content/5b8bf0f1-e939-39b9-8de0-f282bbff0d0e.

Goldman Sachs, however, has made no secret of the fact that it has looked at a number of European cities with the intention to relocate in preparation for the new rules. They employ around 6,500 people in the UK and are concerned about the “long-term stability of huge economies.” Meanwhile, UBS, with more than 5,000 employees, has been looking at a number of European cities to relocate to and currently expect their employee relocation figure to be around 1,000. In addition, JP Morgan has also said that they might need to move around 1,000 jobs.

Unconfirmed access to the single market is one of the key drivers behind the banking industry’s push to look beyond UK’s shores. Retaining access to the single market will keep the doors open for trade post-Brexit and improve efficiency, helping to reduce high prices. The Bank of England believes that up to 75,000 finance jobs will move from the UK to the continent when Britain leaves the European Union, a significant amount for any sector to absorb.

Where will banks move to? So far Frankfurt and Dublin appear to be the most favoured destinations, and with good reason. Dublin has the advantage of being an English speaking country and a stone’s throw away from London. It’s a genuine option and a few banks already have smaller offices based there. With regard to Frankfurt, a number of banks have subsidiary hubs set up in the city. It’s a natural move, as existing links are already in place.

Brexit will bring about unprecedented change that will require specialist knowledge and experience to successfully navigate it. Michael Page Financial Services can help you overcome the challenges you will face during this time of change. We have over 140 offices in 36 countries, including the key relocation areas of Dublin, Frankfurt and Brussels. We have a strong leadership team with an average tenure of 16 years (operational) and our respected brand allows us to attract the very highest calibre of candidates, right up to C-Suite level. 

Michael Page Financial Services can source the best talent to help drive your strategy for business growth into EU regions throughout these times of uncertainty. With a huge network of skilled consultants that operate across 25 disciplines, we’re able to source the right people.

We can help you with your queries and have a proven track record in assisting companies through difficult times of change. 

For more information on how we can help your business, please contact either: michaelwarren@michaelpage.com or davidstansfield@michaelpage.com.