The fallout over Brexit: why are the assets in Luxembourg sweating?
Could it be that this country, which gave the world the former president of the European Commission – Jean-Claude Juncker, became one of the biggest Brexit-winners? We already know that Paris, Amsterdam, Frankfurt, and Dublin all benefited from Britain’s EU departure, as most of the financial institutions (up to this point mostly based in London) opened there to make sure, they still are present in the EU structures.
LFF (Luxembourg for Finance) has been founded 13 years ago with the goal of promoting the country’s service industry. And right now they are doing everything they can, to not be seen as someone who tries to capitalize on the new environment.
Robert Jarvis from the LFF reminds that they actually campaigned for the United Kingdom to remain as a part of the European Union integration. He stressed how much Luxembourg needs the strong position of the European Union. He’s actually putting it in a very simple equation. When something makes the European Union weaker (and the Brexit certainly did so), it automatically makes the country of Luxembourg weaker.
The results (and gains) of the people and companies moving are short-term and do not equalize the losses caused by Brexit. Jarvis even compares Luxembourg and London to brother (of course the capital of England was the bigger one).
LFF owns a MoveToLux.com website. They started even before the initial EU-exit referendum organized in the UK in 2016. This automatically raises the question – “How many professionals actually moved to Luxembourg after Brexit?”. There is no precise data, but the estimates say that there have already been around 3,000 of them. LFF predicts that this number could grow to even 5,000.
The numbers aren’t that impressive, but if you take the scale into the consideration, they actually are, as Luxembourg’s population fairly exceeds 600,000 citizens. So yes, a creation of even a couple of hundreds of jobs has a big impact on the country.
64 new companies have opened their Luxembourg presence after the United Kingdom’s referendum. 31 of them are actually working in asset management. The rest are insurance (13 of these), banking (11), as well as fintech and investment (respectively 6 and 3). Jarvis also had something to say about the new businesses. According to him, they all found their local solutions on a small, typical of the country, scale.
Citigroup, JP Morgan, and Goldman Sachs
Citigroup was one of the first institutions to make Luxembourg their new home. In 2017 their private banking segment moved its headquarters to the city and has since settled in very well. Gregor Bollen from Citi’s structures shared the bank’s perspective on Brexit.
Those events have complicated a lot for them, as they could no longer service clients from all across the EU while being based in London. The practical consequence of the UK’s decision was the move in order to be still able to work with their clients. This doesn’t of course mean that London has been empty since – Citi still employs over 8,000 people there, as the city still hosts the EMEA HQ.
Citi has actually shown how smart (or lucky) they were. They had their EU clients booked in the bank based in Dublin. Thanks to that, Luxembourg was set up as Dublin’s branch, which saved a lot of administrative mess and stress for everyone.
Goldman Sachs managed to register an entity based in Luxembourg as well, and the whole private banking by JP Morgan has been moved there too. The latter actually chose the country as their new European Union headquarters.
Should you want to read more about Luxembourg’s prediction for the future and Brexit response, visit the original Ian Hall’s piece published by Disruption Banking: https://disruptionbanking.com/2021/03/17/brexit-fallout-luxembourg-sweats-its-assets/.
Speaking on the partnership, Mr. Amit Agrawal– OckyPocky, said, “Having successfully created interactive learning modules for kids, we are now expanding our ambit by catering to working blue collared professionals in partnership with a domain leading company such as Quess. We are looking forward to creating top-notch upskilling programs for Quess and contributing to enhancing the country’s vast talent pool.”


