Barclays Brexit BLOW: Bank steps up plans to move EU hub from London to Dublin
BARCLAYS bank is one step closer to shifting a major chunk of its business from the UK’s financial district of London to Ireland as it steps up preparations for Brexit.
The banking giant will seek final approval from the High Court in January next year to move over £200billion in European assets to its Irish subsidiary before March 29, 2019.
Barclays’ decision to apply for an order to transfer its European branches to the Republic is part of its plans to make Ireland its EU base for continuing to trade with the bloc after the UK’s exit from Brussels.
It comes after it emerged that the British banking giant feared it would lose its “passporting” rights, allowing them to do business across the continent after Brexit.
Between 150 and 200 jobs will be created in Dublin as a result of the move which the bank said would be a combination of new jobs and those moving from the UK.
Documents show how the bank has told the High Court its plans to move around 6,800 clients, mainly from its European Economic Area (EEA) including the EU, Iceland, Norway and Liechtenstein, to Dublin.
About 5,800 of these clients come from the bank’s investment, corporate and private banking divisions.
The move, which will see parts of Barclays Bank PLC and Barclays Capital Securities LTD divisions, and its German Barclaycard business, legally transferred to Barclays Bank Ireland PLC, will make Barclays Ireland the largest bank by assets.
Barclays chief executive Jes Staley said the Central Bank of Ireland, which is currently Ireland’s largest bank, had given the British bank the go ahead for its expansion in Dublin.
He said: “We therefore expect Barclays Bank Ireland in its new incarnation to be fully operational before the UK exit in March.”
A judgement by Judge Antony Zacaroli revealed that the application had noted Barclays assumed it would lose its “passporting” rights.
The High Court hearing will take place on January 22.
Anyone who fears the plan will damage their interests can make a case.