Dublin’s finance sector set to grow by 25% due to UK Financial Passporting uncertainty

Business | Thu 7 Mar | Author – Business & Finance
Picture: Giuseppe Milo

Executive recruitment firm forecasts growth of 25% in the FS sector due to Brexit disruption in the UK market

Executive recruitment firm Ardlinn’s forecasted rise would mean previously set government targets to grow the level of direct employment in the International Financial Services sector in Ireland by 10,000 would be significantly surpassed by 2020.

Much of this growth can be attributed to UK financial passporting concerns and job relocations, with recent research showing approximately 10,000 London banking jobs could be on the move as a result of Brexit.

With continued uncertainty in relation to UK financial market access post-Brexit, Irish prospects are being significantly boosted in terms of financial assets transferred, jobs and relocations, with intensive financial processing activity now under way in Dublin as regulators work to accelerate the authorisation of London-based groups seeking to retain access to European markets.

60000 jobs in the international financial services workforce expected by 2020

According to Ardlinn Founder and Director Áine Brolly, the previously-set government target which aimed for 45,000 jobs will be eclipsed, with the international financial services workforce set to grow to 60,000 by 2020.

Dublin is the most popular location choice for financial services firms to relocate to post-Brexit, with 27 firms now having committed to moving staff or operations to the city since the referendum placing it above the likes of Frankfurt, Luxembourg and Paris in the pecking order.

In recent weeks insurance company Aviva confirmed plans to transfer £9bn worth of assets from London to Dublin in what Ardlinn claims is a growing momentum towards a financial exodus from the UK to Ireland.

Growing demand leads to increased salaries

The executive recruitment firm has said this growing demand for financial services in Ireland will lead to increased recruitment of C level roles and will see upper level financial services salaries rise by 20%, with increased choice and competition helping to ramp up rewards in this burgeoning sector.

Latest reports from the CBI show that there are more than 100 new applications in process, with half of those close to completion, and further significant numbers expected to be announced. Áine Brolly added:

Financial passporting was always one of the core issues in relation to London’s wishes to remain in the EU, and we are now starting to see reality of the fallout from the Brexit decision.

“Businesses including EY and Bank of America have recently reinforced this view stating that Dublin could receive ‘hundreds of billions of euro’, with a strong commitment that there will be no return on recent investments made in Ireland, were the UK at this point to row back from the Brexit brink.”