The Brexit referendum, held on June, 23, showed that 51.9% of Britons were in favor of the UK’s exit out of the EU. The consequences of the referendum didn’t delay. Investment banks, which actively supported the campaign for the maintaining of the UK's membership of the EU, immediately reacted to the results of the referendum. Some international banks have begun to take steps for the transfer of the operations from London to other European financial centers - Paris, Dublin and Frankfurt, says Financial Times.
The employees of financial companies are expected to be transferred to the European offices of banks, but this is likely to happen only a few months later.
The large US banks - JPMorgan Chase, Goldman Sachs, Bank of America (NYSE: BAC), Citigroup (NYSE: C) and Morgan Stanley (NYSE: MS) - have large-scale operations, and tens of thousands of employees in the UK. Traditionally, these banks received in the UK the necessary regulatory approvals and licenses, which also gave them permission to operate in the EU countries. However, after Brexit, the banks will probably need a new legal framework, the lawyers warn.
HSBC, Britain's biggest bank, said before the referendum that can transfer 1000 employees in Paris in the case Brexit.
The head of the Bank of France and member of the Board of Governors of the European Central Bank (ECB), François Villeroy Galo, previously warned that banks will lose the right to work in the EU with the British licenses in case of Brexit.
Britain may try to follow the path chosen by Norway, which is a member of the European Economic Area, but not part of the EU. However, in this case, the country will have to comply with all EU rules, and it will not have the opportunity to participate in the development of these rules.
Jonathan Hill, who left last weekend the post of European Commissioner for financial services, is not sure that the UK will be able to go on that path: "Such approaches involve the free movement of people, and I cannot imagine it taking into account how significant was the question of immigration in the debate before the referendum," - said Dr. Hill.
The Japanese investment bank Nomura said that will take a wait and will not rush with the adoption of important decisions. The London Nomura units have about 2600 employees.