Morgan Stanley Contemplating Move of 30% of UK Staff to Dublin, Frankfurt

Morgan Stanley joins the growing ranks of US and European lenders looking to lessen the scope of their operations in London and pursuing alternative jurisdictions within the European Union.

With Barclays and Standard Chartered, among other UK–headquartered lenders, all contemplating a move in the aftermath of the Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term, Dublin and Frankfurt have emerged as the two frontrunners for attracting banking talent. Morgan Stanley is the latest addition to this list - it has begun to weigh its options with the writing on the wall regarding the UK's exit, per a Reuters report.

Two-Horse Race

While both Dublin and Frankfurt have their advantages, Dublin had been emerging as a potential frontrunner though a number of challenges have already started cropping up. This includes a dearth of actual on-the-ground talent in the city, which is not prepared to fill the personnel ranks of all incoming banks.

To date, the banks with the largest staff poised for relocation, to no predetermined destination, include JPMorgan, UBS, HSBC, Morgan Stanley, Goldman Sachs, and Barclays. Even a modest move of this proportion of the workforce would quickly sap Dublin of any available traders.

Morgan Stanley is eyeing a more modest move, with initially only 300 staff from the UK slated for relocation. The US lender will eventually choose between either Frankfurt or Dublin to base an enlarged EU hub for its operations, a familiar set of options for most banks.

May's Rhetoric Crushes Passporting Hopes

Morgan Stanley presently utilizes the UK as the main nexus of its operations on the continent, with over 1,000 jobs in sales, trading, Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term, legal, and compliance. The UK Prime Minister Theresa May is also helping facilitate a need for relocation, as her recent comments have also helped solidify the country’s stance on passporting rights post Brexit.