US bank staff whose roles have moved to European cities from London due to Brexit could lose their jobs after being told that commuting is not a “long term option”.
According to a report in the Financial Times, financial allowances for travel and living arrangements will not be provided for longer than a few months after jobs are relocated.
In preparation for Brexit, multinational banks have been moving jobs to the continent from London, and there are plans to move more roles to financial hubs such as Dublin, Frankfurt and Paris.
Brexit sceptics have predicted that tens of thousands of banking and financial jobs would be relocated away from London if financial institutions in the city lose unfettered access to the European Union markets, but the final implications are not yet clear. So far, US banks Morgan Stanley (MS), Goldman Sachs (GS), Citigroup (C), J.P. Morgan (JPM) and Bank of America (BAC) are planning to take a few hundred staff each to the continent from London.
The Financial Times reports that Morgan Stanley would expect staff to live in the same city as their job. This matches EU regulators’ wishes that those heading up financial and other institutions should live in the countries they influence. The different banks are making their own decisions on how long to offer support. Bank of America has already shifted 100 roles from London to Dublin, and will also move staff to Paris.
The support is designed for affected workers who do not wish to move their children out of school with little notice in the middle of the year, and for other practical reasons that prevent immediate relocation.