As the financial services brace themselves for Brexit we are seeing a significant increase in legal roles required in Luxembourg, Dublin, Frankfurt and to a smaller extent Paris.
It is very unlikely that Brexit regulation will result in an immediate loss of the financial services passport but unsurprisingly banks and funds aren’t willing to take the risk and in the event of a transitional period, want to be ahead of the curve.
Asset Managers are looking to Dublin and Luxembourg, often domiciles of their fund platforms, as a natural place to make an easy move, given they are already registered there. Investment banks have primarily chosen Frankfurt for access to the market infrastructure and pre-existing talent pool. With some of the bigger banks already based there, there is somewhere to start with a stable, tried and tested regime.
This has created a very competitive marketplace with a captive pool of funds lawyers and the consequent replacing of roles that have moved as part of this new demand. With a scarce candidate market, compensation rates in these countries are now approaching parity with London suggesting near-term parity when taking into account the conversion rate of Sterling to Euro.
It has been proving costly for companies who have not only been having to pay higher compensation to secure talent but are also having cost savings of moving workforce to lower cost jurisdictions negated. Companies who were taking a multi-tiered approach and moving parts of their business to other countries to benefit from lower salaries are now seeing less financial advantage as workforce costs level out.
Financial services looking to move parts of their legal function in preparation for Brexit need specialists with international expertise and reach. Danos Associates is in this unique position and we are taking steps to meet the needs of our clients – existing and new.
We are identifying people with the relevant qualifications and right set of language skills who have a willingness to move to Europe. Some, originate from these countries, having moved to London to seek more choice and higher paid jobs. The shift in the market has meant that they can now achieve this back at home.
Many private practice lawyers now have the option to go in-house. For those tempted by the better work/life balance, scope of work, senior visibility and loss of business development pressure are being shown that now is the time for them to make a move. Our forward planning, relationships, market knowledge and agility mean that we have been successful in achieving this and have an excellent track record of being able deliver.
Thanks to a strong period in the global economy, Brexit preparations haven’t signified a mass exodus and there is still strong hiring in the UK.
If you’d like advice on how to ‘Brexit-proof’ or find talent in a competitive marketplace we’re very well placed to help. You can contact me on:
+44 (0) 20 3889 5758