There is no denying that the country is split over Brexit and as our impending departure draws closer the costs and benefits of the economic impact are widely anticipated.
When it comes to the financial services, the movement of roles into the EU that we have seen could cause concern for the UK market but we are pleased to report a reversal of the initial Brexit trend. In fact companies are strategically building out their London offices. Here are eight reasons why:
1. Small EU presence is enough
Businesses have worked out that only minimal on the ground presence is needed to retain an EU passport. Companies have rightly recruited into growing hubs such as Frankfurt, Dublin, Luxembourg and Paris but they only need a foothold, not a complete operational shift.
2. The top talent is in the UK
Advances in technology and communication have meant that it is easy for global corporations to work as part of international teams.
Companies can hire based on talent alone, unencumbered by location and the infrastructure and talent pool quite simply are strongest in London.
With more recruitment in other countries levelling out the salary field, London is no longer seen as the expensive option, giving it an extra boost.
3. London is still the continent’s financial hub
The underling global economy infrastructure is still in London.
BNP Paribas, ‘the bank for a changing world’ have recently announced the launch of corporate banking in the UK showing confidence they can gain from a move on the UK market.
We’re even seeing moves to London from places like Russia from companies seeking a stable political base.
4. The global economy is strong
The global economy is good. There has been greater transactional demand for some time and with more business being done, more infrastructure is needed.
5. Our regulatory scrutiny gives companies credibility
All eyes will be on the UK’s regulation when we come out of the EU so it will have to remain as stringent if not more so to hold out to scrutiny. Companies operating within the transparent and consistent framework can promote trust.
6. Brexit has created jobs
Companies have rightly been preparing for potential impact in regulatory change which has created workload and consequently, hiring.
7. The weak pound makes the UK attractive
Businesses that receive revenue from outside of the UK have found themselves in a more appealing position due to the weakening of the pound. The long view is that if more business is generated from the attraction of cheaper currency, more sterling is still brought home.
Some financial institutions, in particular smaller ones see Brexit as an opportunity to be more efficient with their compliance efforts. Their hope is that more tailored regulation will mean efforts won’t be forced on irrelevant policies and be relative to size and risk. This saving will allow them to price themselves more competitively against bigger players and ultimately remain in business.
Whatever happens, Compliance, Legal and Risk functions are going to be at the forefront of adapting to Brexit change. If you would like our support in getting the right team in place please get in touch.
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