Not wholly and exactly

Although we know there will be those who red this is being true in a wholly and exactly manner:

Firms move €150bn of UK assets to France ahead of Brexit
Banque de France says 31 entities – mainly investment firms – have applied for licences in France, moving €150bn of assets since September

Folks have moved the country of registration of the companies that manage €150 billion of assets to France. They’ve not actually moved €150 billion there. They’ve not sold out of UK stock and bought French. The little company “we’re a registered investment trust limited” has become “we’re a little investment trust SA” with the letterbox in a different city.

Sure, this is obvious, we know it. But there will be people out there complaining about the €150 billion having left the British economy….

7 thoughts on “Not wholly and exactly”

  1. Andrew M
    October 12, 2020 at 8:52 am
    Surprised they’ve chosen France rather than Dublin.

    Easier to travel to and fro London/Paris… Eurostar, London City Airport.

  2. To the (very limited) extent to which they may need to persuade senior bods to relocate, Paris would be a much easier sell than Dublin (which is basically Liverpool, but without the night life).

  3. As it happens Paris is a major fund management centre, which is to say where the actual investment management occurs. Dublin like Luxembourg is more a back office centre for settlement etc. It sounds like some fund managers who do business in the EU have chosen to move their official fund management HQs to France.

    All these jobs will move back to London over time because London remains the primary overseas fund management centre.

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