HSBC is preparing to move 1,000 workers from London to Paris because of confusion over the UK's Brexit plans, the HSBC chairman Douglas Flint told MPs today.
Douglas Flint, said his company was putting in place plans to shift some activities to the continent if the U.K. lost so-called passporting rights into the EU. He revealed HSBC could begin moving staff and operations even before the two-year negotiation period triggered by Article 50 comes to an end.
Flint also warned that other international banks are thinking "very quickly and very carefully" about deserting the City of London. As the U.K. is a member of the EU, many international banks use London as a base to access the Single Market and offer certain types of financial services. If the U.K. was no longer able to offer such products, banks could relocate to another financial hub, such as Paris or Frankfurt.
A delegation from Paris is due to meet with firms in the City of London next month to talk up what the French capital has to offer.
Speaking today, Flint said: "If you are foreign institution hubbing into Europe from London you really have no choice than thinking very quickly and very carefully how you replicate the access to Europe that you would lose once the U.K. leaves the EU." The desertion of international banks from the U.K. would have implications for the U.K. economy, as the City of London contributes 3 percent to country's total GDP, and 11.5 percent of total tax receipts.
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