Brexit is not an easy topic. Most of the discussions have been about trading and political matters. However, there are even more pressing issues the island may face as the financial industry becomes harder to operate for foreign companies. Many of these companies are considering a full-scale withdrawal from the UK, France being one of the first to actually confirm it.
Since Brexit is right over the horizon, plans needed to be made by the top 3 banks of France about the withdrawal of some of their staff from the island. It used to be going around as a rumor, believed to be something the EU was using as leverage against Brexit, but since there is no turning back now, it has been confirmed during an interview with Bloomberg.
The 3 companies are Societe Generale SA, Credit Agricole SA and BNP Paribas SA. These 3 companies are looking to take no less than 500 employees out of London and transfer them to the same positions opening in Paris. However, there are still talks, whether a transfer will occur or if those people will just find themselves jobless on an isolationist island. The 3 companies are also considering opening new positions for the local population in Paris.
Number of employees to leave the UK
According to an interview with Bloomberg, the Chief Financial Officer of Credit Agricole, Jerome Grivet, the company had considered this predicament the moment Brexit was voted upon. All that is left to hope about is a soft Brexit, in order to minimize the number of transfers. Nevertheless, the company is enthusiastic about moving more staff back to Paris or even hiring new ones locally.
BNP Paribas has the same issue, according to a spokeswoman’s statement this week, in the case of a hard Brexit, the company is looking at no less than 90 transfers out of London. Societe Generale has the largest numbers as it is expecting to move out no less than 300 employees to Paris, which could warrant massive disruptions to the UK FX job market.
The damage has already been done
Many speculators have been talking about the impact that Brexit will have on the UK FX job market. Most of them believe that the financial hub of the country will suffer greatly from the loss of connections to the EU, but there is still opposition. Although Brexit will definitely move away quite a large amount of human resources out of the country, the financial industries within the island are still on top of their game.
But take the forecasts with a grain of salt as there has not been a clear decision on how the UK will be leaving the EU. In both scenarios we get different results, the speculations alone have done enough damage, although limited. The worst case scenario would be a complete deficit of competent professionals, making the local firms train new ones for the future, ultimately putting some percentage of their firms on hold.