Morgan Stanley To Relocate 80 Jobs To Paris Post Brexit

Morgan Stanley (NYSE:MS) is planning to enhance its workforce in Paris by adding about 80 jobs, post-Brexit. As per a person familiar with the matter, jobs will either be relocated or created in Paris. The news was reported first by Les Echos, a French newspaper.

The bank has chosen Frankfurt as the hub for its broker-dealer business whereas its asset management business will be shifted to Dublin, inside the European Union (EU). As Britain is likely to lose the “passporting rights” post-Brexit, which enable international banks to open branches and conduct business easily in any part of the European territory after the initial process of registration is over, the banks have been busy carrying out contingency plans.

Per the person, around 200 jobs will be moving to Frankfurt out of the 300 which are likely to be transferred to different cities spread across Europe.

Earlier in March, UBS Group (NYSE:UBS) assured job safety to some of its employees who would be affected by the shifting of the base to Frankfurt from London on account of Brexit. The company plans to shift employees by using a decentralized approach.

Other banks have also made contingency plan to be executed post-Brexit.

Notably, Japan’s Nomura Holdings, Inc. (NYSE:NMR) has also chosen Frankfurt as its headquarters, post Brexit. The company is expected to shift about 100 employees from its London office to Frankfurt.

In late 2017, Credit Suisse (SIX:CSGN) Group AG (NYSE:CS) disclosed plans to distribute its trading, investment-banking and wealth management operations post Brexit to various European cities. Frankfurt, Madrid and Paris had topped its list of preferable locations.

Shares of Morgan Stanley gained 3.6% over the past three months compared with the industry’s growth of 7%.

Currently, the bank carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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