Financial service companies need a regulated subsidiary in an EU country to offer products across the bloc, which could prompt some to move some operations out of Britain if it loses access to the European single market.
Around 10,000 finance jobs will be shifted out of Britain or created overseas in the next few years if the UK is denied access to the single market, a Reuters survey of firms employing the bulk of workers in international finance shows.
Following are related stories about top banks (in alphabetical order):
ASSOCIATION OF FOREIGN BANKS IN GERMANY
The association expects 3,000 to 5,000 new jobs in Frankfurt over the next two years as a result of Brexit, its head Stefan Winter, of UBS, told Welt am Sonntag in June. He said he expected 12 to 14 major banks to expand their Frankfurt sites significantly or build new ones.
BANK OF AMERICA CORP
Bank of America (>> Bank of America) named former CFO Bruce Thompson as the new leader of its European global banking and markets operations to be based in Dublin, according to a company memo from Chief Operating Officer Tom Montag.
Bank of America is looking to lease more office space in Paris as the bank prepares to expand its operations in the French capital to cope with the impact of Brexit, according to two sources familiar with the matter.
The bank has already said it has picked Dublin as the new legal headquarters for its EU operations.
Bank of America said in August that its businesses and results could be adversely affected and it may have to incur additional costs if Brexit limited the ability of its UK entities to conduct business in the EU.
Barclays (>> Barclays) has signed a lease agreement for more office space in Dublin as it prepares to expand its operations there to cope with the impact of Brexit.
It said in July that it was talking with Irish regulators about extending its activities in Dublin.
Chief Executive Jes Staley has said that Barclays will keep the bulk of its activities in Britain and any changes to how the bank operates would be small and manageable.
BNP Paribas (>> BNP Paribas) may move up to 300 London investment bank staff because of Brexit, depending how clients adapt and the French bank's efforts to win new UK business, a source said.
The company had 3,123 staff in its corporate and institutional bank in Britain at end-2016, down from 3,294 a year earlier, internal documents seen by Reuters showed.
Citigroup (>> Citigroup) is applying for a license to conduct sales and trading activities in France, James Cowles, Citi's chief executive for Europe, the Middle East & Africa (EMEA) told a French newspaper.
Citigroup has said it may need to create 150 new jobs in the EU and confirmed it would headquarter its EU trading operations in Frankfurt.
The U.S. bank is also at an advanced stage in plans to move part of its private banking unit from London to Madrid, a source familiar with the matter said.
Credit Agricole (>> Crédit Agricole), France's third-biggest listed bank, could relocate about 100 employees from its London hub to France out of 1,000 based there in the case of a "hard" Brexit, its chief executive said.
Credit Agricole is to move its European government bonds trading platform from London to Paris in September 2017, a spokeswoman told Reuters.
Credit Suisse's (>> Credit Suisse Group) Chief Executive Tidjane Thiam said in September that his bank is relatively well placed to deal with Brexit and that only 15-20 percent of volumes in the investment bank would be affected.
DAIWA SECURITIES GROUP
Japan's No. 2 brokerage Daiwa Securities Group (>> Daiwa Securities Group Inc) said it will set up a subsidiary in Frankfurt, making it one of the first banks to publicly choose Germany to keep a foothold in the EU.
The group has said it would still keep staff in London even after Brexit. It has 450 staff working in the EU now, mostly in the British capital.
The German city is Daiwa's favored destination, as London-based staff can easily be transferred to its investment banking branch in Frankfurt, Chief Executive Seiji Nakata said.
Deutsche Bank (>> Deutsche Bank) is beefing up its presence in Frankfurt. Chief Executive John Cryan said the German lender expected to add new jobs in Frankfurt, where it will replicate a structure that is interchangeable with its London operations and evolve as Brexit negotiations unfold.
Deutsche Bank warned in April that up to 4,000 UK jobs could be moved to Frankfurt and other EU locations - the highest potential move of any bank.
European supervisors want Deutsche Bank to prepare a fallback plan, laying out how it could shift the clearing of trades from London, one person told Reuters.
Deutsche Bank is "uncomfortable" with the uncertainty over regulations following Brexit, a senior official at Germany's biggest bank said.
Settlement bank Euroclear is looking at setting up a branch or subsidiary to provide a route between its UK and Irish markets, the head of its UK and Irish operation said.
FRENCH BANKING FEDERATION
French banks could shift about 1,000 jobs from London to Paris to keep staff in the EU, the French Banking Federation said.
U.S. bank Goldman Sachs (>> Goldman Sachs Group) is considering moving up to 1,000 staff to Frankfurt because of concerns over Brexit, Handelsblatt reported in January.
Goldman will begin moving hundreds of people out of London before any Brexit deal is struck as part of its contingency plans, the CEO of its European arm said in March.
Wolfgang Fink, co-chief of Goldman Sachs in Germany, said in September it may triple or quadruple its presence in Frankfurt.
The bank has since agreed to lease office space at a new building in Frankfurt as it prepares for Brexit, a spokesman for the bank said on Oct. 4.
HSBC (>> HSBC Holdings) could spend up to $300 million moving jobs and parts of its business to Paris, CEO Stuart Gulliver said. The estimate includes the costs of relocating up to 1,000 jobs to the French capital and associated legal fees.
Investec (>> Investec) (>> Investec Ltd) is considering converting its London bank's Dublin branch into a subsidiary to ensure it has continued access to the European single market, Chief Executive Stephen Koseff told The Telegraph in May.
However, the Anglo-South African lender and asset manager would see only a small part of its business affected by Brexit, the newspaper quoted Koseff as saying. (http://bit.ly/2qywZzY)
JPMorgan Chase (>> JP Morgan Chase & Company), the biggest U.S. bank by assets, said in July that the bank would probably use Frankfurt as the legal domicile of its European operations after Brexit, though jobs could be moved elsewhere as well.
The U.S. bank has also agreed to buy a Dublin building with room for 1,000 staff in the first sign of a financial services company expanding significantly in Ireland since the government began a major campaign to attract businesses after Brexit.
However, the bank, which employs about 500 people in Dublin, did not say how many jobs would be created or whether any positions would be moved from the United Kingdom.
JPMorgan has chosen Warsaw to host a new global operations center that will employ several thousand people over the next few years, Polish Deputy Prime Minister Mateusz Morawiecki said.
U.S. bank JPMorgan Chase JPM.N plans to hire more than 3,000 people in its new global operations center in the next three years, the Polish Development Ministry said in September, though the moves are not directly linked to Brexit.
Julius Baer, Switzerland's third-biggest private bank, is moving its European hub from Frankfurt to Luxembourg but will continue to keep its options open in London, chief executive Boris Collardi has said.
Brexit opens the door for a UK-Swiss deal covering financial services, said Collardi.
Julius Baer is opening three new UK offices as it looks to the bank for wealthy residents spooked by Brexit.
LLOYDS BANKING GROUP
Lloyds Banking Group (>> Lloyds Banking Group), Britain's largest mortgage lender and the only major British retail bank without a subsidiary in another EU country, is close to selecting Berlin as a European base to secure EU market access.
Morgan Stanley (>> Morgan Stanley) has chosen Frankfurt to be a new base for its EU operations, a source familiar with the matter said.
"That means 200 new people will be coming to Frankfurt," the source said.
Morgan Stanley has identified many of the roles that will need to be moved from Britain, sources involved in the processes said.
The U.S. bank, which bases the bulk of its European staff in Britain, will have to move up to 1,000 jobs in sales and trading, risk management, legal and compliance, as well as slimming the back office in favor of locations overseas, one source told Reuters.
Morgan Stanley could initially shift 300 staff from Britain after its EU exit and is scouting for office space in Frankfurt and Dublin, Bloomberg News reported in February.
The bank plans to double the number of its bankers in Frankfurt to 400, Welt am Sonntag reported in June.
Japan's Mizuho Financial Group (>> Mizuho Financial Group, Inc.) said it would set up a subsidiary in Frankfurt, the latest Japanese bank to choose the German city as its new base in the European Union as Britain prepares to leave the bloc.
MITSUBISHI UFJ FINANCIAL GROUP
Japan's Mitsubishi UFJ Financial Group Inc (>> Mitsubishi UFJ Financial Group Inc) said in September that it has picked Amsterdam as its EU investment banking base.
Nomura Holdings Inc (>> Nomura Holdings Inc) is applying for a license to operate a new entity in Frankfurt.
Asset management company Northern Trust (>> Northern Trust Corporation) has said it will set up an EU banking base in Luxembourg.
Around a third of Northern Trust's institutional clients have asked it to ringfence British exposure from their broader European portfolios to protect them from Brexit-related risks.
Royal Bank of Scotland (>> Royal Bank of Scotland Group) said it may move up to around 150 jobs to Amsterdam after Brexit.
RBS also said it was in talks with the Dutch central bank to use a license it has in the Netherlands to conduct some Natwest Markets business there if it becomes necessary.
RBS Chief Executive Ross McEwan said the bank will enact its Brexit plans by the end of March 2018 if no clarity emerges about Britain's ability to retain access to the single market.
Societe Generale (>> Société Générale) could move 400 corporate and investment banking jobs from London, with most going to Paris, Chief Executive Frederic Oudea said in July.
Oudea said the possible move of jobs after Brexit would affect 300-400 investment banking jobs out of 2,000 it has overall for that business in London.
Standard Chartered will need to spend around $20 million making Frankfurt its European base in order to secure market access to the European Union when Britain leaves the bloc, Chief Executive Bill Winters told Reuters in August.
SUMITOMO MITSUI FINANCIAL
Sumitomo Mitsui Financial Group Inc (>> Sumitomo Mitsui Financial Group, Inc.) said its core banking unit, Sumitomo Mitsui Banking Corp (SMBC), has decided to set up a subsidiary in Frankfurt.
TD Securities, the investment banking arm of Toronto-Dominion Bank Group (>> Toronto-Dominion Bank), said it would expand operations in Dublin to bolster its European business in response to uncertainty triggered by Brexit.
UBS (>> UBS Group) is weighing up whether to move banking jobs in London to Frankfurt, Madrid or Amsterdam to cope with Britain's planned EU departure, Chief Executive Sergio Ermotti said in July.
The bank has estimated that it would need to "move 1,500 people" from London to the EU to retain full passporting rights, according to Chairman Axel Weber. That would be more than a quarter of its 5,500 staff in London.
The world's biggest wealth manager has also set up a bank in Frankfurt to consolidate most of its European wealth management operations.
(Compiled by Noor Zainab Hussain and Esha Vaish in Bengaluru; Editing by Rachel Armstrong, Alexander Smith, Greg Mahlich)
Stocks treated in this article : BNP Paribas
, Société Générale
, Crédit Agricole
, Northern Trust Corporation
, Bank of America
, Goldman Sachs Group
, Morgan Stanley
, Deutsche Bank
, Toronto-Dominion Bank
, Investec Ltd
, Lloyds Banking Group
, Standard Chartered
, Daiwa Securities Group Inc
, Nomura Holdings Inc
, Mitsubishi UFJ Financial Group Inc
, Mizuho Financial Group, Inc.
, Sumitomo Mitsui Financial Group, Inc.
, Credit Suisse Group
, Royal Bank of Scotland Group
, HSBC Holdings
, UBS Group
, JP Morgan Chase & Company