Financial Services Are Fleeing the UK Thanks To Brexit

The fact that Brexit is causing turmoil for the global markets is nothing new, but according to a study, the cause for concern might be bigger than previously expected. According to the audit firm EY, more than $1 trillion (£800 million) have been moved from the UK to the EU by financial services since the Brexit referendum in 2016.

The Brexit Scare is Real for Financial Firms

In a recent study performed by the audit firm EY, UK financial services are scared of what Brexit is about to bring. So far, these firms have moved roughly 10 percent of the financial market to Europe.

According to the EY study, more than £800 billion pounds or $1.2 trillion has been moved elsewhere in the European Union since the referendum in 2016.

Considering that the UK financial market is predicted to be worth roughly £8 trillion, the shift is concerning.

What is even worse is that the financial firms have made it clear that they will increase the rate they move the closer we get to the Brexit deadline in March. This means that as much as 20 percent of the UK financial market could be relocated to Europe in the next few months.

In fact, out of the 222 companies that participated in the survey, 20 have confirmed that they are planning to move staff, operations, and other vital parts of their firms to Europe before March 29th. However, it’s predicted that as much as a third of the 222 firms have or are considering similar plans.

To put things in perspective, at least 7,000 jobs in the financial sector will be relocated to hubs across Europe and another 2,000 jobs will be created for locals in the same areas.

Concerns Revolving Trading Regulation

Another issue that the financial sector in the UK is faced with has to do with trading regulation.

Today all trading in the European Union has to follow the Markets in Financial Instruments Directive (MiFID), this includes the UK’s regulatory body the FCA. However, there is currently some confusion regarding how they will continue to regulate the market after Brexit and if the MiFID will be used.

Naturally, this is causing stress for many of Europe’s CFD and forex brokers since they are relying heavily on customers from the UK. In fact, most of the respected forex brokers are located in the UK.


During the last two and a half years, the Brexit referendum has caused chaos and unease across the UK global market, and the situation is about to reach a peak in the next few months.

There is a real risk that as much as 20 percent of the UK financial market will end up moving to the rest of Europe by late March, and this will obviously have a major impact on all of us.

Ricardo is a freelance writer specialized in politics. He is with from the beginning and helps it grow. Email: richardorland4[at]