Fewer opportunities for UK graduates in finance

The exodus of the financial sector has already started.

http://uk.businessinsider.com/banks-get-ready-to-move-staff-from-london-2016-6

Banks including JP Morgan, HSBC and Goldman Sachs are already moving their operations out of London to the rest of the EU.

Any British graduates (excluding Northern Ireland) will find it harder to get a job in finance even if they are willing to leave the country because they no right to work in the rest of the EU when the UK finally leaves the EU.

Reply 1

username738914

Original post by Maker

It's not affecting all roles and the full extent of this brexit decision won't be known until 2 years down the line.

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Reply 2

Maker

Original post by Princepieman

It's not affecting all roles and the full extent of this brexit decision won't be known until 2 years down the line.

Posted from TSR Mobile

But why would a bank like JP Morgan hire a British graduate and spend a lot of money training them knowing he/she would not be able to work in the rest of the EU in a couple of years time when the bank might have to relocate?

It make far more sense to hire German or Irish graduates if the bank has expending bases in Ireland and Germany and a strinking base in Britain.

(edited 7 years ago)

Reply 3

username738914

Original post by Maker

But why would a bank like JP Morgan hire a British graduate and spend a lot of money training them knowing he/she would not be able to work in the rest of the EU in a couple of years time when the bank might have to relocate?

It make far more sense to hire German or Irish graduates if the bank has bases in Ireland and Germany a strinking base in Britain.

Because, they already do that for Europeans coming over here? They're not exactly cash strapped lol

'Finance' is broad. Most of the advisory (actual IB) businesses will still be located in the UK but maybe some regional coverage teams would be relocated.

Foreign exchange dealing desks (and most likely some other markets teams) would probably have to be relocated due to regulatory issues - but, as of now there haven't been any indication on negotiations surrounding dealing licenses between the UK and the EU. So any preemptive moves would be mostly speculative until those are confirmed.

And of course there may be some incentive to move back office staff.

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(edited 7 years ago)

Reply 4

Maker

Original post by Princepieman

I assume IB workers need to travel to the EU to see clients etc. If they have no right to work in the EU, how can they serve their clients?

They can apply for work visas of course but why bother when its much easier and cheaper to relocate to the EU and cut down on red tape, uncertainty and delays.

Reply 5

username738914

Original post by Maker

That's a good Q, which does cover an area that again hasn't really been confirmed. I assume if we don't opt for free movement, there would be some visa provision for business travellers.

Not to mention a lot of banks have teams that cover strictly UK and Ireland companies for financing/M&A advisory etc...

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Reply 6

Josb

The UK hasn't left yet and it seems unthinkable that a British government will renounce to the EU passport for its banks. They will make all the concessions necessary to keep it and this is what the next government will say to banks.

I don't see an exodus coming.