The European Union’s financial hubs do not have the capacity to deal with the fallout from the UK following its exit from the economic and political union, according to the chief executive of the Irish Funds Association.
Over the last 12 months, there have been several financial services firms looking to set up shop in various cities across the EU, including Dublin, before Brexit comes into effect.
Hermes Investment Management, Legal & General Investment Management and Standard Life Aberdeen are just some of the firms looking to set up business in Ireland.
Waves lapping on European shores
Pat Lardner, chief executive of the Irish Funds Association, said, during a media briefing attended by International Adviser: “There is no city in the EU that has the capacity to deal with what is going to come out of the UK.
“You have probably seen a number of larger organisations make critical business decisions. They are the first cohort. I assume there will be another grouping of people. I think it is going to be lapping waves.
“Does increased activity put pressure on activity? Yes. Are we alone and unique in that? No. Are we already seeing companies adjusting and amending in a way which they deploy talent in country? Yes, and that will continue to develop as well.”
Britain’s exit plans for leaving the EU have been thrown up in the air in the last 24 hours. As reported by IA, several ministers including; secretary of state for Work and Pensions, Esther McVey, Brexit secretary Dominic Raab and junior Brexit minister Suella Braverman, resigned from their cabinet posts following prime minister Theresa May publishing the UK’s draft Brexit agreement with the EU.
Transitional period
Whatever the deal brings, the Irish Funds Association is hoping for a few months grace to adapt to changes after Brexit is fully implemented.
Kieran Fox, director of business development at the Irish Funds Association, added: “If we get a transitional period that will help.
“If it does come in to play – I don’t think it will change people’s minds about needing an authorisation somewhere else. But it might give more time to spread out that requirement.”
Lardner and Fox also spoke about the association’s ambitions for global growth, admitting that it is “looking to broaden” with the hope to “partner with everybody”.
