Saturday 1 October 2016

Dublin and Frankfurt will reap benefits of Brexit - global poll

Published 19/08/2016 | 02:30

62.12% of respondents feel Dublin will benefit
62.12% of respondents feel Dublin will benefit
Frankfurt: 68.86 of respondents felt the German city will benefit

A global survey of 2,000 investment professionals has tipped Dublin to benefit from the UK's vote to pull out of the European Union.

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The study by the CFA Institute - the global association of investment professionals - found that 62pc believe Dublin, as a financial services centre, will be a winner from the Brexit result.

Frankfurt came out on top, however, with 69pc believing the German city that plays host to the European Central Bank had the most to gain.

And the vast majority of respondents -more than 80pc - believe London will lose out as a result of the referendum vote.

It's hoped that Dublin can gain an investment boost, particularly in financial services, as a result of the result from the June 23 poll.

The potential loss of 'passporting rights' could see some finance houses move operations out of London.

But there have been doubts at home about the extent to which Dublin can benefit because of a shortage of housing and the high personal tax rates.

But the CFA survey shows Dublin is regarded as a potential contender. "There is a lot of uncertainty about what is going to result from Brexit with a lot of potential negatives for Ireland and the Irish economy," said Fran Carter, president of CFA Society Ireland, the Irish arm of the CFA Institute.

"But one positive from the survey by our parent institute is that Dublin's attractiveness as an international financial centre will be significantly boosted by Brexit."

Dublin has already been attracting interest.

Insurer Prudential has confirmed it is considering shifting funds from its asset management wing to Dublin and Luxembourg as it moves to deal with the fallout from the UK vote.

The boss of Prudential's M&G fund arm, Anne Richards, said the company could boost the number of funds it already has based in the two cities, depending on the outcome of the Brexit negotiations.

And international law firm Pinsent Masons is reportedly looking for office space here.

European capitals are jostling for a piece of London's financial industry and has stepped up efforts to promote themselves as an affordable and creative alternative to other centres.

Berlin's Senator for Economics, Technology and Research, Cornelia Yzer, has sent hundreds of letters to British businesses, for example, and has travelled to London Fintech Week to lobby startup founders.

Berlin Partner has also launched a website in English and will reportedly open a pop-up lab in London in October to try to woo more companies.

The French government has also pledged to make its tax regime for expatriates the most favourable in Europe.

The Irish Independent reported last month that the IDA will seek additional resources from Government amid signs the battle to win investment is intensifying. Chief executive Martin Shanahan said his agency's drive to win new business for Ireland kicked off within hours of the result of the British vote being known.

Around 54pc of respondents to the survey believed Paris could be the big winner, followed by 45pc for Luxembourg and 41pc for Zurich.

Some 59pc of respondents said that fragmentation of the UK following the referendum is more likely than not, while almost half of respondents said that they thought Brexit would be the forerunner of further withdrawals from the EU.

Irish Independent

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