Firms were determined to move their activity from the UK to other European countries because Brexit effects are still largely unknown and difficult to forecast. London's position as the dominant financial center in Europe will be affected by company migration. One positive outcome for the rest of Europe though will be the dissolution of the very powerful singular financial center, represented by London, into a "multipolar" region with several strong financial centers.
"Our conservative estimates shows that banks and investment banks are moving around GBP 800 billion in assets; asset managers have so far transferred more than GBP 65 billion in funds; and insurance companies have so far moved GBP 35 billion in assets," wrote New Financial in the report.
"GBP 800 billion in bank assets is nearly 10% of the UK banking system. The final tally is likely to be much higher, which will reduce the UK's tax base, supervisory influence and ultimately have an impact on jobs," added New Financial.
The study shows that Dublin was the favorite location chosen by the migrating companies, with around 100 relocations. It was followed by Luxembourg (60 relocations), Paris (41), Frankfurt (40), and Amsterdam (32). Banks preferred Frankfurt as their new "nest," 90% of them moving to the EU's banking center and home of European Central Bank.
Click here to access the full report made by New Financial.