Surge in relocation inquiries from financial firms after Brexit vote
Published 23/10/2016 | 02:30
The Central Bank is understood to be witnessing a material uplift in inquiries from financial firms mulling a relocation from London to Dublin, as the UK moves towards Brexit.
A growing number of companies in the financial sectors have been assessing Ireland in terms of regulation, housing, infrastructure and education. While the Central Bank will not fast track any firms seeking to be regulated in Ireland, those already regulated in the UK would have the systems in place for a transfer to the Irish system.
It is understood that the bank already has plans in place to commit additional staff and resources in line with any increase in applications which may arise due to Brexit.
Earlier this month, the Bank warned that so-called brass plate operations, whereby an office is based in Ireland but little else, would not be acceptable. Decisions would need to be made in Ireland, reflected in the remuneration of staff based in Dublin and other measures,
Several firms are in the process of assessing the benefits of Dublin against other cities around Europe.
Last week Citi held a board meeting in Dublin and met with Taoiseach Enda Kenny, which was planned before the results of the Brexit referendum. However, Citi has been tipped as a firm which may locate operations to EU countries.
In an internal memo in June, the company, which employs more than 9,000 people in the UK, out of about 22,000 in the EU, said it may "rebalance" operations across the region if the UK opted to exit.
Citigroup employs about 2,500 people in Dublin, and has offices in Belfast.
Sources also said that a Chinese bank was considering locating its operations from London to Dublin in light of the pro-Brexit vote.
Uncertainty surrounding Brexit is already impacting on a number of sectors in Ireland, with concerns rising in financial circles that the impact when Brexit actually takes place will be far greater.
At present, the most significant impact is the weak sterling which is already putting pressure on companies in a wide range of sectors.
Sunday Indo Business