Ratings agency DBRS is shifting staff from London to Frankfurt due to Brexit. The financial outfit, owned by big-hitters the Carlyle Group and Warburg Pincus, needs a new German base to retain the EU licence required to sell its services across Europe. DBRS is one of the European Central Bank’s four recognised rating agencies.
The European Securities and Markets Authority said recently that ratings agencies were required to have ‘sufficient presence’ in terms of analysts and compliance departments in an EU country post-Brexit. DBRS rivals Fitch, Moody’s and S&P are already ahead of the agency on that score.
Earlier this month, UBS said it would merge its UK entity with its Frankfurt-based European HQ before the Brexit deadline of end-March 2019.
More London banks will likely pick Germany as a European base to ease the impact of Brexit, with German financial regulator BaFin currently handling more than 10 requests for local banking licenses.
And Frankfurt will be the big winner here. The city could gain up to 5,000 jobs as mainly US and Japanese banks shift operations there, the Association of Foreign Banks in Germany said last week.