The financial fallout from Brexit continued last week when Nomura and Daiwa announced they would be relocating some operations, and therefore jobs, to mainland Europe.
The latest Japanese institution to follow suit is Sumitomo Mitsui Financial Group who confirmed, via a media release, it will move some of its London operations to Frankfurt post Brexit.
The company said in the statement the move is «to ensure that Sumitomo Mitsui Banking Corporation (SMBC) can continue offering banking services to clients with no disruption once the U.K. leaves the EU. SMFG currently employs around 1,000 people in London.
Squabbling For Business
With the United Kingdom almost certainly to lose financial passporting rights once it exits the single european market, Dublin, Paris, Frankfurt and Luxembourg have all set out their stalls to grab any share of departing banks and financial services firms.
Last week, Nomura and Daiwa said they would move some European operations from London to Frankfurt to smooth over potential Brexit difficulties.
Brexit May Mean Opportunity
Not all Asian institutions are heading for the exit however. Singapore's largest bank thinks the recent Brexit vote could lead to more business links between Asia and Britain.
Speaking to the «Financial Times» (paywall) Tan Su Shan the Managing Director and Group Head Consumer Banking and Wealth Management at DBS was quoted as saying «Sterling getting cheaper has been an attractive draw to the Asian investor, and with Brexit, the U.K. may reach out to Asia more as a trading partner.»
In July 2016 DBS announced a new wealth management office in London, which serves ultra high net worth clients and family offices looking to Asia, and Asian clients looking at London and beyond.
DBS has recently received a U.K. Securities Licence in London and intends to expand its team in the British capital.
