Strategy

LGIM Gets Green Light For Post-Brexit Base

Josh O'Neill Assistant Editor 16 May 2018

LGIM Gets Green Light For Post-Brexit Base

The move confirms plans first announced around this time last year.

Legal & General Investment Management (LGIM) is pressing ahead with plans to make Dublin its post-Brexit base, joining a number of institutions flocking to other European financial hubs ahead of the split. 

The Central Bank of Ireland (CBI) gave LGIM’s Dublin arm the green light to set up shop in the city, confirming plans announced in May 2017 to establish a management company in the Republic of Ireland to manage its EU-domiciled UCITS and Alternative Investment Funds.

The firm is seeking to sidestep any potential impact the UK’s divorce from the European Union could have on its operations, amid escalating fears about the future of current “passporting” rules, which allow companies to freely offer their products and services across other member states. 

Eve Finn, managing director for LGIM Ireland, said: "I am delighted that our Super Manco in Dublin has been authorised by the CBI. This will allow us to manage all of our EU-domiciled funds within Europe after the UK leaves the EU.”

While Brexit will undoubtedly rattle the UK’s financial services sector, a recent survey showed that the number of finance jobs to be shifted out of the country by the March 2019 Brexit deadline had dropped by half compared to earlier forecasts to 5,000 roles. 

A Reuters survey of 119 firms in March, following up on a survey published in September 2017, also found that Paris had overtaken Frankfurt as the most popular destination for the new roles.

Some banks lowered the estimates for jobs they needed to move as they considered more carefully how much of their operations they would need in the EU if Britain loses access to the bloc’s single market, the survey found.

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