Staff in London’s financial services are stubbornly refusing relocation requests from the major banking firms that they work for. Earlier in 2021, Bloomberg interviewed a team of 15 City of London traders if they would move to Frankfurt or Paris due to structural changes after Brexit. Explaining the results of the interviews Eva Kingston, a partner specialising in financial services at recruiter Stanton Chase, said: “Where there is resistance, I think it’s usually to do with family circumstances, they have partners who want to stay here, or children in school.”
Ms Kingston then said that several of those interviewed announced they’d rather quit their job than leave London.
She added: “We have had a lot of people coming to us who have been told to relocate, and they want to explore what other opportunities there might be in London rather than having to move abroad.
“Being asked to move to Frankfurt seems to be a particular problem, maybe it’s the distance.”
One banker at JP Morgan spoke to the Daily Mail and stated that many people were not willing to relocate abroad.
He added: “There have been problems people don’t, and won’t, go to Frankfurt or Paris.”
“It’s not a surprise.
“They’ve got their kids and lifestyle set up.
“Frankfurt isn’t a great city.
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“The French are not very welcoming to foreigners.
“The big cities are still London, New York and Hong Kong if you want to make real money.”
It has been reported that many staff at JP Morgan have quit because of internal relocation efforts since Brexit.
Sources at JP Morgan have reportedly blamed this on efforts to move teams to Paris.
Bloomberg first reported that when a 15-person team of London-based traders were asked to move to the French capital, around half quit rather than leave the UK.
More than two in five, or 43 percent, of City of London financial services firms, have moved or plan to move some of their UK-based operations.
Data from the Financial Services Office state that many City-based staff have already left for the continent.
In May Deutsche Bank announced a plan to move 100 jobs out of the City of London and relocate to the EU and Asia.
UK based banks have moved or are in the process of moving more than £900bn in assets to the EU.
This is the equivalent 10 percent of the entire UK banking system.
Recent reports have claimed that HSBC and Citigroup have already announced relocations to the EU.
Now, JP Morgan has warned it may have to move its European operations out of the UK.
In April president and chief executive officer at JP Morgan Jamie Dimon announced that this relocation was “many years out”.
However, he warned that the City of London needed to “adapt and reinvent itself” after Brexit.
Speaking to thisismoney.co.uk Nick Miller, a partner in the financial services practice of recruiter Odgers Berndtson, said some of the reluctance to relocate to Europe could also be, “Covid overlay”.
He said: “To people who have moved internationally in the past, the world felt increasingly small because you could just hop on a plane anywhere.
“Now you’re weeks away from anywhere because of quarantine.
“We’ve had conversations with people about elderly parents and kids at school.”
In the wake of Brexit in January 2021, at least 440 banks and financial services companies claimed to be in the process of moving some part of their operations and managed assets from London to EU cities.