More than 1000 banks, asset managers, payments firms and insurers from the European Union are planning to open offices in post-Brexit Britain so they can continue to serve UK clients, according to City A.M.
The new offices are deigned to counter the loss of business from reduced access to the EU, once the UK leaves the union. By October 2018, almost 1,500 EU-based firms had applied to the FCA for temporary permission to operate in the UK afer Brexit.
Over 1,000 of these firms do not currently have an office in the UK. Hence it appears that UK could still be considered a major financial hub post-Brexit.
The firms applied to operate in the UK under the Temporary Permission Regime (TPR), which will come into force when current passporting permissions between the UK and EU become defunct, allowing companies from the bloc to operate in the UK while they seek full permission from the FCA.
Accountancy firm Ernst Young said that large UK-based firms had now implemented plans enabling them to continue operating in the EU after Brexit. It estimated that around 7,000 positions would be relocated from London to the continent and a further 2,400 jobs created and hired for locally at the new EU hubs.