London’s financial sector loses more than 7,000 jobs after Brexit

Brexit has moved just over 7,000 financial sector jobs from London to the European Union. Those jobs are fewer than initially feared, but according to accounting and consulting firm EY, the numbers could still go up. Because of Brexit, British banks are no longer automatically licensed to operate in the EU.

The UK’s exit from the European Union has moved 7,400 jobs to the remaining member states of the Qatari bloc, according to EY. That’s just below the 7,600 jobs the bureau expected at the end of 2020. It’s also a much lower number than what financial services firms warned of the 12,500 jobs over the 2016 Brexit referendum.

Paris attracted most of the workers from the financial sector in London. 2,800 people were settled in the French capital as a result of Britain’s exit from the European Union. Frankfurt and Dublin followed with 1,800 and 1,200 financial workplaces, respectively, located in the British capital even before Brexit.

According to EY, the shifting of jobs from the UK to EU countries is not over. For example, it is very likely that branches in the European Union of banks in London will need more staff. The European Central Bank checks whether offices in the member states have a sufficient number of staff to issue a banking license that is recognized within the European Union.

The United Kingdom and the European Union reached a Brexit agreement at the end of 2020, after an 11-month transition period, which included several agreements on reciprocal trade. No definitive agreements have yet been concluded regarding the financial sector. Brussels and London have yet to come to an agreement promising to regard each other’s oversight of the financial sector on an equal footing. This makes it easy to do business in the EU and UK at the same time. The European Union has proposed extending a temporary agreement on cross-border financial services, which will run until June.

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The UK’s exit from the European Union has moved 7,400 jobs to the remaining member states of the Qatari bloc, according to EY. This is just below the 7,600 jobs the bureau expected at the end of 2020. It is also a much lower number than the 12,500 jobs financial services firms had warned about the Brexit referendum in 2016. Paris attracted the most workers from London’s financial sector. 2,800 people were settled in the French capital as a result of Britain’s exit from the European Union. Frankfurt and Dublin followed with 1,800 and 1,200 financial workplaces, respectively, located in the British capital even before Brexit. According to EY, the shifting of jobs from the UK to EU countries is not over. For example, it is very likely that branches in the European Union of banks in London will need more staff. The European Central Bank checks whether offices in the member states have a sufficient number of staff to issue a banking license that is recognized within the European Union. The United Kingdom and the European Union reached a Brexit agreement at the end of 2020, after an 11-month transition period, which included several agreements on reciprocal trade. No definitive agreements have yet been concluded regarding the financial sector. Brussels and London have yet to come to an agreement in which they promise to regard each other’s oversight of the financial sector on an equal footing. This makes it easy to do business in the EU and UK at the same time. The European Union has proposed extending a temporary agreement on cross-border financial services, which will run until June.

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Megan Vasquez

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