Oireachtas Joint and Select Committees

Tuesday, 30 May 2017

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach

Brexit - Recent Developments and Future Negotiations: Discussion (Resumed)

4:00 pm

Mr. Ed Sibley:

I will answer some of that and then Mr. Cross will come in. Some of the financial services sector in Ireland is focused domestically and some internationally. That is very evident in the banking sector and in other sectors. Similarly, in the UK there are many firms that are focused internationally rather than on servicing the UK economy. There is a risk associated with Brexit for firms currently located in the UK that focus on servicing the EU in that they will no longer be able to provide those services or those lines of business. They are actively thinking about where they are currently located in other parts in Europe and if they can transfer business operations from the UK to those existing entities. That is what we are seeing. In banking, that might result in what is today a relatively small entity in Ireland becoming a very material and much more complex entity in the services it provides. There are also entities in the UK that might not have a footprint elsewhere in the EU but are providing services to the rest of the EU. They are more likely to think about setting up a new entity and undertaking that somewhere in the EU in order that they can continue to service their customers and clients across the EU.

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