Morgan Stanley, one of the world’s top investment banks, may initially move 300 staff from the UK following its exit from the European Union, and is eyeing office space in Dublin and Frankfurt.
Morgan Stanley had already unveiled its plan to move up to 1,000 jobs out of the UK before the vote to leave the European Union last June.
Reasons behind fleeing London
Morgan Stanley has joined the growing club of US and European lenders which are trying to decrease the scope of their operations in London.
“Our focus is on ensuring we can continue to service our clients whatever the Brexit outcome. Our strong franchise and material presence in Europe gives us options, and we will adapt as the details of Brexit become clear. Given all of this, no decision have yet been made,” said Hugh Fraser, a spokesman for Morgan Stanley.
International banks have started to contemplate the move of jobs out of the UK after Prime Minister Theresa May said she plans to pull Britain out of the single market.
Morgan Stanley is the latest addition to the list, which includes, among others, Barclays and Standard Chartered. For all the lenders, Dublin and Frankfurt have emerged as the two frontrunners for attracting banking talent.
According to Brussels-based research group Bruegel, global banks in London may have to shift €1.8 trillion of assets to the continent after Brexit is completed, putting around 30,000 UK jobs at risk.
Why Dublin and Frankfurt?
Frankfurt and Dublin are emerging as the biggest winners at London’s expense as banks prepare for Brexit.
Frankfurt is a reasonable choice for banks fleeing London considering its financial ecosystem featuring Deutsche Bank AG, the European Central Bank and BaFin.
As for Ireland, it is a natural pick because it is a low-tax, English-speaking location with similar laws and regulation to Britain.