EU rivals gaining on Britain as tip mark for investment in finance: EY

LONDON (Reuters) – Britain’s lead as a tip European end for general investment in financial services is starting to slight as continental rivals opposed for a business are increased by Brexit, according to a news published on Monday.

FILE PHOTO: The Canary Wharf financial district is seen during eve in London, Britain, Nov 17, 2017. REUTERS/Toby Melville/File Photo

The report, by accounting and consulting organisation EY, found that a UK hosted only 14 some-more unfamiliar investment projects in financial services final year than second-placed Germany, down from a opening of 67 in a prior year.

The series of projects in a UK fell 26 percent in 2017, compared to an boost of 64 percent in Germany, 123 percent in France and 13 percent opposite Europe as a whole.

Britain’s EU neighbors have looked to gain on doubt over a destiny entrance to European markets to inspire financial firms to set adult emporium in their possess countries, in a plea to a long-established repute as a European collateral for a sector.

Omar Ali, EY’s UK financial services leader, pronounced Britain hung on to a tip mark as factors like a talent, infrastructure and clever regulatory and authorised systems were tough to replicate overseas.

“But we can’t omit a dump in investment and forward-looking view – investors are promulgation a transparent summary that answers are indispensable on destiny trade arrangements, entrance to skills and a UK’s destiny proceed to a economy.”

UK financial services captivated 78 unfamiliar investment projects final year, down from a record 106 in 2016, EY said. Germany, in second place, won 64, while France saw 49, adult from 39 and 22 respectively.

Ireland saw a series boost from 12 to 28, while Luxembourg captivated 17 projects compared to 2 in 2016.

For tellurian financial firms that rest on Britain’s membership of a EU to run their European operations, delayed swell in Brexit negotiations has stoked fears that their entrance to a confederation could be limited or even close off altogether after Mar 2019, when Britain leaves.

This has stirred many to order skeleton for a worst-case scenario, that customarily engage changeable some of their British operations on to a continent to strengthen them even if Britain crashes out of a confederation with no deal.

Some banks, including Barclays (BARC.L) and JPMorgan (JPM.N), have already started relocating some of their staff elsewhere.

“The doubt is, will this be a proxy change or a start of a some-more postulated trend?” Ali said.

A consult conducted by EY as partial of a news found that two-thirds of tellurian financial firms hadn’t altered their investment skeleton following a Brexit vote, and 75 percent pronounced they had no skeleton to immigrate to a continent.

Retaining clever trade arrangements with a EU was cited by 39 percent of investors as pivotal to ensuring a UK stays appealing in future, with 33 percent observant a same for trade deals with new countries and 31 percent highlighting incentives for unfamiliar investors.

Reporting by Emma Rumney; Editing by Jan Harvey

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