HSBC and JP Morgan to consider moving from UK to Luxembourg

16th Jun 2015 07:12

HSBC and JP Morgan are weighing relocating parts of their businesses from the UK to Luxembourg, given a potential exit of the country from the European Union (EU), The Times reported.Both lenders are also analysing the tougher rules imposed by the EU for conducting business outside of the Eurozone.JP Morgan is said to be close to setting up a bank based in Luxembourg in an attempt to avoid the fallout should a Brexit occur, although it would keep its headquarters in London."The transitional costs are likely to be substantial, as uncertainty over future arrangements would likely cause investment to fall and consumers to defer spending," the lender said in a statement.HSBC was also said to be considering to move its headquarters, after announcing on 9 June a round of job cuts and branch closures with the aim of saving between $4.5bn to $5bn in annual costs by 2017.The news came as the UK's Financial Conduct Authority's (FCA) chief executive Martin Wheatley warned on the previous day that, although a 'Brexit' would have a limited impact on the country's financial sector, some firms would move operations to other EU member states and some companies would restructure themselves.Nonetheless, it would not lead to the decline of the whole sector, Wheatley told the Wall Street Journal.