J.P. Morgan Chase & Co. is relocating some of its wealth management operations from London to Luxembourg as it prepares for Brexit.
Plans to establish a wealth management business that will be based in Luxembourg has been announced by JPMorgan. It comes as a part of the company’s corporate restructuring
The US bank has announced that the firm will also be merging its Luxembourg bank with its bank that is based in London into one legal entity. It is scheduled to be completed early next year.
It said that the plan for restructuring was “long-planned.” A spokesperson of JPMorgan said that the wealth management business will still have a significant presence in London.
The move will enable JP Morgan to support its clients who are from “across the European Economic Area.”
The bank also hoped to enhance its capabilities and boost offerings in its investment banking and custody and fund divisions.
Once the said merger is completed, assets and liabilities – which will include legal agreements and client accounts – will be transferred from the J.P. Morgan International Bank Limited or JPMIB, a bank that is based in London and is authorized and regulated by the Prudential Regulation Authority and Financial Conduct Authority, to J.P Morgan Bank Luxembourg S.A (JPMBL), another member of the JPMorgan Chase & Co. group that is located in the European Economic Area. The London bank will then be dissolved.
JPMBL is a bank thati s regulated and supervised by the Commission de Surveillance du Secteur Financier. It is also supervised by the European Central Bank.
Luxembourg is one of many continental destinations where most asset and wealth managers, as well as other financial services firms, have decided to expand into or move to as their post-Brexit outposts in anticipation of the looming Brexit.
The shares of JPMorgan initially plunged, however, it eventually rose by half a percentage.