New research published by EY, the consultancy group, has revealed that most British-based fund management companies have yet to reveal their post-Brexit contingency plans, some two years after the country voted to leave the European Union.
EY’s report says just 22 of the 57 UK-based asset and fund managers surveyed said they had announced their plans for when the country withdraws from the EU in March next year.
Ernst and Young’s report, which focuses on the largest such groups operating in the UK, shows that most companies have not specified whether or not they intend to relocate operations or employees to the continent.
“There will . . . be major structural shifts in relation to products and distribution to allow fund management houses to continue to serve their customers in the event of a hard Brexit, both in the UK and overseas,” said Gill Lofts, UK head of wealth and asset management at EY.
Dublin and Luxembourg emerged as the most popular cities for basing EU operations, with the survey revealing 10 companies announcing plans to open or expand their Irish offices and four singling out Luxembourg.
Several of the firms surveyed already have a significant presence on the continent, and this is thought to be a factor in the low announcement rate to date.