Daily Management Review

Former brokers are making money on Brexit in Luxembourg


Two former brokers from London that now live in Luxembourg found an interesting way to make money on Brexit, Bloomberg writes.

C. Martinez
C. Martinez
Mark Hollis and John Heffernan opened a shop. Now, they are offering financiers leaving the City of London a constant supply of British products such as Marmite or Yorkshire tea.

According to businessmen, the Home from Home store, which sells other favorite products of expats, has already attracted many financiers who are moving from London to Luxembourg.

After voting for the exit of Great Britain from the European Union, several European cities joined the race for attracting London business. Several funds, banks and insurers have already chosen Luxembourg. Earlier this year, American International Group Inc. insurance company said that it plans to open a branch in this country.

In addition, RSA Insurance Group Plc, the American insurer FM Global, and the insurer Lloyd's of London Hiscox Plc, together with the investment company Blackstone and other asset managers like M&G Investments, chose Luxembourg as the new European home. JPMorgan Chase & Co. is plannig to transfer some London bankers to the Grand Duchy, too.

"Some financial companies - I think there are now over 20 of them - said they are going to move to Luxembourg, mainly funds and insurance companies," Mark Hollis told Bloomberg, noting that Brexit can bring more customers to their store.

Capital markets, asset management, private banking, cross-border insurance and reinsurance remain one of the main areas for the financial center of Luxembourg. In addition, Luxembourg serves as a base for several EU institutions, including the European Court in Luxembourg, the European Investment Bank and the European Stability Mechanism (ESM).

Although Brexit benefits his business, Hollis is not among the supporters of Britain's withdrawal from the EU.

"I think this is a completely wrong decision for the UK," he said. "They voted for it, so they have to deal with it."

On Friday, the UK and the European Union reached agreements that allow them to move to trade negotiations.

The second stage will be even more difficult and important than the first. German Chancellor Angela Merkel said that it would be much more difficult than the “divorce” procedure lasting the last eight months.

source: bloomberg.com

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