The U.K. could lose up to half of its investment banking jobs over the next few years if the government continues to pursue a hard-line exit from the EU, a new report has warned.
As many as 40,000 sales and trading and investment banking roles could move from the City of London to other European finance hubs as banks scramble to maintain access to the European single market once Britain leaves the bloc in 2019, according to estimates from consultancy Oliver Wyman.
Already a number of banks, including Citigroup, UBS and Barclays, have announced plans to relocate thousands of jobs to new subsidiaries across the EU. Financial services firms were given until July 14 to present the Bank of England with their contingency plans.
Initially these moves are expected to take between 12,000 and 17,000 wholesale banking jobs out of the U.K. capital. However, this number could rise to 40,000 over the longer-term as wholesale banks face uncertainty over clearing and seek to improve collaboration between staff.