Friday 24 November 2017

EY ranks Dublin as Brexit favourite

A survey has shown Dublin fractionally ahead of Frankfurt as a preferred Brexit location
A survey has shown Dublin fractionally ahead of Frankfurt as a preferred Brexit location

Gretchen Friemann

Dublin is the most preferred Brexit location among financial services companies, out-muscling Europe's chief financial centre, Frankfurt, according to a sentiment indicator compiled by Ernst & Young's London office.

The survey of 222 banks, asset managers, private equity firms, insurers and fintech firms, shows the Irish capital fractionally ahead of its German counterpart. While the EY Brexit Tracker captures broad ranging public statements on how financial services companies' are responding to the UK's imminent exit from Europe, the results deliver a confidence boost to the Government's efforts to compete for Brexit spoils.

A total of 19 companies identified Dublin as a city they would consider moving to post Brexit or were considering moving to, giving the city an edge over Frankfurt, which attracted 18 mentions.

However, relocations actually carried out since the referendum amount to just 23 or 17pc of those surveyed.

Frankfurt has been widely portrayed as the chief beneficiary of the UK's decision to leave the single market, with a number of international banks setting up shop in the city, or bolstering existing operations.

However, Ireland has won some hard-fought victories. It has lured in banking giants JPMorgan and Barclays, as well as top-tier asset managers like Legal & General Investment management.

Omar Ali, EY's UK Financial Services Leader, noted the number of firms signalling their intention to move in the wake of the triggering of Article 50 has increased only slightly.

The difference, he said, was "three months on....is that we are seeing major financial brands put their contingency plans into action."

He predicted "this process will only accelerate as firms finalise their submissions to the regulators on their Brexit plans".

EY's latest monitor adds to the wave of bad news surrounding Brexit. Yesterday ratings agency, Standard &Poors, warned the UK economy is set to lose momentum as uncertainities about the outcome of the EU divorce negotiations crimp investment and bolster inflation amid a fall in the value of sterling.

Irish Independent

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