More than 1,400 banks, asset management firms, payments companies and insurers from the European Union have applied to operate in the UK post-Brexit, with over 1,000 of these planning to establish their first UK office. These new offices will seek to mitigate the loss of business as the current unrestricted two-way access between Britain and the EU comes to an end in December 2020, following a Brexit transition period. The figures, taken from a Freedom of Information (FOI) request, are seen as evidence that the UK will continue to operate as a leading player on the global financial stage after Britain leaves the EU.
The FOI request revealed that by October 2019, the Financial Conduct Authority (FCA) had received a total of 1,441 applications from firms to use the Temporary Permission Regime (TPR), which will come into force when current passporting permissions between the UK and EU become defunct. The TPR will allow European Economic Area firms and funds to operate in the UK while they seek full permission from the FCA.
Likewise, there is research which suggests that UK-based firms had implemented plans enabling them to continue operating in the EU after Brexit, estimating that around 7,000 positions would be relocated from London to the continent and a further 2,400 jobs created and hired for locally at the new EU hubs.
In addition to the growth of the financial sector, recent research suggests that the UK is establishing itself as a leading tech hub, with figures released last month by Tech Nation showing that investment into the UK’s tech start-up scene topped £10bn in 2019 – the fastest growth of anywhere in the world. This growth was mirrored in tech salary increases, with the UK’s average increase of 13% outstripping Toronto, New York and San Francisco. Such an increase reinforces the UK’s status as a global growth hub and indicates that the UK will continue to attract top talent worldwide.
UK Digitalisation Sector Growing Rapidly
The UK’s Digital Minister, Matt Warman, states that the government intends to continue this momentum by strengthening regional tech clusters, supporting digital business and investing in people’s digital skills. The UK’s commitment to championing the digital sectors is also evident in the strength of the digital marketing industry, having experienced its eighth consecutive year of growth. This growth has seen the UK become the largest digital advertising centre in Europe, according to recent research. The report by advertising think-tank, Credos and Enders Analysis discovered that this growth is expected to continue, with UK advertisers set to spend almost two-thirds (62%) of their budgets online in 2020.
With just a few months left for the UK to negotiate its future relationship with the EU, the Ecovis Network is perfectly positioned to advise clients on possible future trading environments and assist in making the most of the post-Brexit opportunities. The strength and breadth of the Ecovis Network and its local knowledge provide a significant competitive advantage for companies and clients.
For further information please contact:
Gerry Collins, Partner, Chartered Accountant & Auditor, ECOVIS Wingrave Yeats, London, UK
Ecovis is a leading global consulting firm with its origins in Continental Europe. It has over 7,500 people operating in over 75 countries. Its consulting focus and core competencies lie in the areas of tax consultation, accounting, auditing and legal advice.
The particular strength of Ecovis is the combination of personal advice at a local level with the general expertise of an international and interdisciplinary network of professionals. Every Ecovis office can rely on qualified specialists in the back offices as well as on the specific industrial or national know-how of all the Ecovis experts worldwide. This diversified expertise provides clients with effective support, especially in the fields of international transactions and investments – from preparation in the client’s home country to support in the target country.
In its consulting work Ecovis concentrates mainly on mid-sized firms. Both nationally and internationally, its one-stop-shop concept ensures all-round support in legal, fiscal, managerial and administrative issues.
The name Ecovis, a combination of the terms economy and vision, expresses both its international character and its focus on the future and growth.
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