James Bardrick, the UK head of Citi Bank has warned that, regardless of the future deal agreed with the EU on the UK’s access to the EU financial services market, job losses will occur in London’s financial sector following Brexit.
Bardrick commented that even if the UK is able to negotiate UK banks retaining the finance “passport” enabling them to sell their products and services across the EU, financial organisations will likely reassess their London operations. Bardrick explained that “If you don’t have full access to the single market then there are things you just cannot do from London under EU rules, which would remain in the other EU 27 countries”. The warning comes as the Financial Times reported a 13.6 per cent downturn in jobs advertised in London’s financial sector in the two months following the referendum, compared with May and June.
A number of financial organisations have already cited Dublin as a possible relocation base should the UK lose its passporting rights. However, companies looking to make this move have been told that authorisation cannot be circumnavigated. Gerry Cross, the Central Bank or Ireland’s Director of policy and risk, has said that whilst Brexit offers the potential for a “material increase” in the number of financial companies moving to Dublin, regulators will seek evidence of a “substantive presence” from applications.