Advertisement

  1. ITV Report

Morgan Stanley 'to create post-Brexit hub in Germany'

Up to 200 jobs in London could be lost as a result of the move, it was claimed. Credit: PA

The US banking firm Morgan Stanley is to create a post-Brexit EU hub in Germany in a move that could see up to 200 jobs leave the UK, according to reports.

It is preparing to apply for a licence with the German regulator that will allow it allow it to continue trading across the EU after Britain leaves, according to the Press Association.

Around 200 UK jobs could be relocated as a result of the decision, impacting staff in both front and back office operations.

The move is expected to double the workforce at its Frankfurt office, which currently houses 200 staff, though the bank may also bulk up additional offices in Paris and Dublin as part of its post-Brexit strategy.

However, sources told the Press Association that London will remain Morgan Stanley's European headquarters.

Morgan Stanley declined to comment.

A number of banks are expected to move work to Europe after Brexit. Credit: PA

Reports of the move will add to fears that the UK is risking its place as the heart of Europe's financial centre by leaving the EU.

Citigroup is also expected to confirm later this week that it will be moving up to 200 jobs from the UK to its Frankfurt office, which will become a broker-dealer entity to serve its EU clients.

EY's Brexit Tracker, released the first week of July, showed that 18 financial services firms had mentioned Frankfurt or Germany in their post-Brexit contingency plans.

Currently, London has the largest financial sector in the bloc - but there is speculation that many firms may be looking to move at least some of the operations back inside the common market zone after Brexit.

France is known to be hoping to poach jobs to Paris.

Morgan Stanley says it has over 5,000 staff in London at present, with over 3,000 others in a number of offices across Europe.