JPMorgan Chase is planning to relocate nearly 200 London employees as the no-deal Brexit looms, Bloomberg reported.
The bank believes that there is a minimum chance that the UK could win a deal on financial services before the year-end, as it prepares to exit the EU.
JPMorgan sales and trading staff will need to sign new contracts and prepare for relocation by 1 Jan 2020, the report added citing people familiar with the matter.
Some of the bankers will move to European cities including Paris, Frankfurt, Milan, and Madrid.
Relocating to European cities will minimise problems around moving children in the middle of their school year, according to Bloomberg.
Bankers will be given commuting and accommodation support for up to six months, as well as assistance with language courses.
Some commuters will also be required to quarantine as a result of the Covid-19 pandemic. They can choose to relocate at a later date if there is a last-minute deal or any delays.
JPMorgan is relocating its bankers because the EU has not yet recognised the UK for having strong rules to set up a cross-border trade process called equivalence.
Unless a deal is reached, banks will no longer be able to use London hubs to conduct business with European clients.
The UK Prime Minister Boris Johnson labeled Europe negotiators as “abusive” after years-long talks between London and Brussels turned increasingly bitter.
JPMorgan’s decision comes after this development, Bloomberg said.
Earlier this month, Bank of England Governor Andrew Bailey said that inking a deal on financial services was not worth pursuing at any cost.
JPMorgan, including other banks in the City of London, have already moved out some of their staff to new European entities.