Barclays' Chairman McFarlane Hints at Post-Brexit Moves

For over a year now, 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 has loomed in the minds and decision making of leading banks operating in the UK. As the paramount financial center in Europe, ongoing negotiations with the UK government have left many lenders in a state of limbo – however Barclays has given its strongest signals to date of more concrete move in personnel into the bloc.

This stance had long been adopted not just by Barclays but other lenders such as RBS, Deutsche Bank, and Standard Chartered, among others. Earlier this summer, most lenders opted to relocate their European headquarters within the bloc into cities such as Frankfurt and Dublin.

Staff move in the hundreds

The strategy was echoed today in a parliamentary committee hearing by Barclays’ Chairman John McFarlane, who portended that "staff moves from Brexit could be in the hundreds", according to a Reuters report.

For its part, Barclays has been part of a cadre of lenders looking to Dublin, one of the top two destinations for banks for their post-Brexit headquarters. The timetable was largely dictated by the Bank of England (BoE), which required banks to disclose their plans during this period. This coincided with a flurry of announcements from banks, which pointed to Dublin, Frankfurt, Paris, and even Amsterdam as plausible landing spots.

Presently Barclays is in discussions with Irish lenders about moving a segment of its operations to Dublin ahead of the UK’s formal exit from the EU in March 2019. The transition would be quite seamless given that Barclays already possesses a licensed entity in Dublin, i.e. Barclays Bank Ireland.

The unit has only a hundred employees at present, and it is licensed to conduct corporate banking activities. Barclays is in talks to augment the mandate of this unit, which will garner rights to serve clients once the UK formally leaves the EU.

While 2017 was dominated by mostly conjecture, 2018 may see the publication of more formalized plans and concrete relocation plans. Many licenses take time to secure, and despite measures adopted by the German and Irish government, the relaxation of certain Obligations Obligations In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you Read this Term will still require a due process.

More likely, mid-late 2018 will signal upcoming strategies by leading lending authorities in Europe. Despite any move in personnel however, Barclays is largely staying put in the UK. As recently as April, the group’s fintech arm Rise dramatically expanded its operations in London, suggesting that the UK capital will continue to be an emphasis for its 2018 outlook and beyond.