Le Monde, Sia Partners and Brexit Job relocations
Fabien Zaveroni, Associate Partner in the Corporate and Investment Banking department of Sia Partners UK, recently met a journalist from Le Monde to exchange views on the post-Brexit landscape for Banks, specifically the transfer of jobs out of London to other major financial locations. The conversation, in which Fabien was using the Sia Partners Brexit Job Tracker was then referenced in a Le Monde Article published 10/12/2018.
Two key questions which are dominating financial services in the context of Brexit is where banks will relocate to in the post-Brexit era, and how many of their employees they will transfer out of London. As to the question of where, Paris, Frankfurt and Dublin appear to be the leading locations of choice.
According to a recent article from Le Monde, Paris remains the frontrunner in the race to attract the vast amounts of capital, both human and financial, at stake from banks. The question is, will the recent violence that has shaken the country, at the hands of the ‘gilets jaunes,’ push banks towards other major locations?
According to Le Monde, the banks are already too far through the transition process to change tack now. Fabien Zaveroni agreed, explaining that for two years now, banks have already been preparing for the worse case scenario: a no-deal Brexit.
Fabien, referencing the Sia Partners Brexit job tracker, then explains that 2,539 banking jobs will be transferred from London to Paris, compared with 2,071 from London to Frankfurt. Overall, Sia Partners forecasts 4,613 banking jobs to be transferred out of London to other European locations. Among the big banks, Bank of America Merrill Lynch, JP Morgan and HSBC currently appear to be transferring the highest number of jobs to Paris, according to the Brexit tracker.
The French government has been committed on all fronts to attracting jobs to Paris, in what Le Monde labels Macron’s ‘Operation Seduction.’ Progressive reduction of corporate tax to converge towards the European average, stabilisation of tax norms, abolition of the marginal band of tax on wages and possibly even the creation of an international chambers in the Commercial Court and the Paris Court of Appeals are among the measures aimed at enticing custom from London.
Yet, even if the behemoths have long made up their mind about where they will move to, there is still a significant amount of business to play for among smaller Financial Services firms, especially investment houses.
These smaller businesses are likely to be rather more sensitive to the on-going violence in Paris. They will be weighing up the situation and comparing it with that of Italy, Germany and even the UK in order to determine where the best fit is, and for now, nobody appears to know which city, if any, will be most popular.
The full article can be found here.
The Sia Partners Brexit Job Tracker
- All information and data from banks regarding jobs relocations and transfers due to Brexit was collected from publicly available source.
- All data was then centralised and cross-referenced to create a comprehensive analysis of job cuts taking place in banks due to Brexit, headcount trends of different banks in different regions, and which cities appear to be the main post-Brexit targets for banks to move their employees to.