Strategy

JP Morgan, HSBC Consider Moving Some UK-Based Operations To Luxembourg; "Brexit" A Concern - Report

Tom Burroughes, Group Editor, London, 16 June 2015

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The risks that UK voters might choose to take the UK out of the European Union in a referendum is, a report claims, prompting two major banks to consider shifting some activities outside Britain.

HSBC and JP Morgan are considering plans to move parts of their businesses to Luxembourg from the UK because of concerns that the UK might quit the European Union, according to The Times (of London).

JP Morgan in particular is close to establishing a Luxembourg-based bank that would handle clearing of eurozone transactions, which could lead to it moving more of its operations from the UK if there is a British exit from the EU, the publication said.

The changes would not cause a large number of jobs moving to Luxembourg, and London would remain the European headquarters of JP Morgan, at least for the time being, the report said, citing an unnamed source.

The report added that the banks could not be contacted at the time of going to press.

In recent weeks, HSBC has stated it is reviewing whether to move its corporate headquarters outside of the UK. Besides the European Union exit risk (or “Brexit”), another source of concern for such banks has been recent increases to government levies on banks.

 

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