By twicepix via Wikimedia Commons
UBS, a Swiss bank, has informed its employees that the majority of those who will be affected by Brexit will relocate to Frankfurt from London, setting out what the company dubbed as a decentralised approach to the relocation of its staff.
A source who is familiar with the said plans informed Reuters that the reported changes are anticipated to affect fewer than 200 employees of UBS. The company has approximately 5,000 employees in London.
According to a company memo, the staff who will be affected will be informed in the coming months, and the relocations will depend on where the clients are based.
In its annual report on Friday, the Swiss bank separately said that it would merge its British entity, UBS Limited, into its German headquartered European bank, UBS Europe SE, in the absence of a transition deal between the United Kingdom and the European Union.
The said merge would take place before the United Kingdom leaves the European Union on the 29th of March, 2019.
In the memo, Andrea Orcel, the investment banking chief of UBS stated: “After a thorough analysis, which included your feedback, we have opted for a more decentralised model and plan to leverage our existing UBS Europe SE and its extensive branch network.”
The said plans that were announced by UBS are the most recent sign of how banks are beginning to execute their Brexit contingency plans after Theresa May, the British Prime Minister, ruled out retaining the passporting rights for financial services.
The loss of the passporting rights – which currently allow financial firms to freely offer various advisory, trading, and financial services to corporate clients who are across all the states of the European Union via just a single local license – is a primary concern for the banks.
This week, Goldman Sachs said that it was beginning to transfer some of its senior bankers to Frankfurt in preparation for the exit of the United Kingdom from the European Union. The chief financial officer of Standard Chartered informed Reuters that it has already begun interviewing some candidates for approximately 20 jobs that the company is relocating to Frankfurt.