Brexit will be two-way traffic.

There is a lot of commentary about firms moving their European Head Quarters to various EU capital cities from London. If we are to believe the popular press, the traffic is all one way out of the UK. Our own client experience indicates that the vast majority of traffic is actually heading to London. If we take insurance as an example. The UK is the largest European market for insurance:

  • Just over 100 firms passport out of London into the EEA
  • Approximately 700 EEA firms re passporting into the UK.

Just yesterday, the Dutch finance firm TMF yesterday presented its plans for one of the biggest flotations on the London stock market this year in a major vote of confidence in the UK.

TMF said that once the deal is completed it will leave its headquarters in Amsterdam for a new base in the London. TMF employs 7,000 staff in more than 80 countries and offers accounting, tax and payroll services for clients such as LinkedIn and Netflix. The firm is estimated to be valued at around £1.4billion when it goes public next month.

TMF executives said the Brexit vote 'has not been a barrier to the company choosing London' – adding the UK's exit from the EU 'could actually present an opportunity'.     

Other signs of confidence in London include:

  • Russian energy company En+ outlined plans to raise £1.1billion in London and Moscow – making it Russia's first listing in London since 2014. 
  • British Virgin Islands investment company J2 Acquisition also said it had raised £950million through an initial public offering on the London Stock Exchange.
John O'ByrneComment