Barclays has gained approval to shift assets worth £170 billion to Ireland in the middle of the continued uncertainty over the no-deal Brexit. The approval came from the High Court ruling which allowed the start of no-deal Brexit contingency plan to transfer assets related to about 5000 clients to a Dublin based unit.
The £170 billion asset shifting is a sizable chunk of the overall assets of about £1.3 trillion of the multinational investment bank and financial services company. The plan which would be in place by the Brexit date 29 March 2019 would double the size of the Dublin based operations from currently 150 employees to 300. The bank stated that the shift of assets is in accordance with their 2017 announcement when they decided to continue serving their clients beyond the 29 March 2019 date by using the Ireland based subsidiary’s existing EU license. The bank added that their preparations are well in advance and will be fully operational before 29 March.
Barclays which serves in investment banking, corporate banking along with some wealthy private clientele had to ask the approval of High Court before transferring operations in branches including Sweden, Portugal, Netherlands, Italy, Spain, France and Germany.
The courts approval followed after the Royal Bank of Scotland applied for the shift of operations worth £13 billion to Amsterdam in preparation for the no-deal Brexit. The shift in base allows the businesses to continue serving European clients after the Brexit as EU regulations will not be applicable to UK- based businesses after Brexit. The move safeguards them from possible disruptions in their operations. If the banks don’t move they would lose their passporting rights in the event of no deal Brexit which allows them to do cross-border business.
High Court Judge Mr. Justice Snowden said in his judgment that owing to the continued uncertainty over a no-deal Brexit, Barclays Group has determined to move some of its operations out of UK. Barclays is also bringing extra staff to its Singapore, London and New York offices for helping investment banking clients to manage their operations in UK markets. The chief focus of the investment banks is to help their clients to navigate through the ensuing market volatility after Brexit.
Barclays is a London, UK based Investment banking and financial services company with £1.3 trillion in total assets.