FCA chief executive Andrew Bailey has said banks are feeling pressure from lobbying efforts to relocate business from the UK to the EU as Brexit approaches.
Rival trading centres are looking to maximise business wins from Brexit, Bailey told MPs on the Treasury select committee yesterday.
The Times quotes Bailey as saying: “We are aware there is some pressure on firms. There are discussions about what you might call ensuring there is a critical mass of business moved over to a European Union entity that is being created.”
The FCA’s position, as it set out in a recent letter to London-based financial services firms, is that business should only be making the “minimum necessary changes” to where clients’ business is booked.
Bailey said yesterday: “I know [financial services firms] will be under pressure to do a sort of big jigsaw puzzle and move these people here because it will make that [EU] entity more self-sufficient. But you’ve got to do it in the interests of those clients. That’s the point. We didn’t do this to say ‘nobody must leave the UK’.”
Paris has been a particularly contested market since the Brexit referendum vote, with major banks like JP Morgan preparing to move hundreds of jobs there, while others like Goldman Sachs have looked to Frankfurt for a new EU hub.