JPMorgan to set up Luxembourg wealth management unit in Brexit move
JPMorgan is shifting some of its wealth management operations from London to Luxembourg in anticipation of the UK leaving the EU.
Some investment banking and corporate banking operations will also move, according to the Financial Times.
The US firm plans to create a “significant” business in Luxembourg, according to the report, which will allow it to serve more fund management clients across the European Economic Area.
As part of this shift, the bank is merging its London-based business JPMorgan International Bank with JPMorgan Bank Luxembourg.
“As part of the long-planned restructuring, the firm proposes to merge two legal banking entities into one allowing for seamless client support for these specific businesses across the European Economic Area,” the New York-based lender said in a statement.
JPMorgan’s Brexit plans are “past the point of no return” and as many as 4,000 staff could move in the event of no deal being agreed between the UK and the EU.
Mark Garvin, vice chairman of JPMorgan’s corporate and investment banking arm, told the Commons Treasury Committee this week that the bank was already well underway with plans that began in August 2016 to move operations to the continent.
“We are now in full execution mode,” Garvin told MPs.
JP Morgan follows other companies in deciding to change parts of their business ahead of Brexit.