Fund manager Royal London has been given approval to move more than £1bn of assets to Dublin, as the financial firm steps up Brexit contingency planning.
Despite £1bn gross being transferred, the business net assets transfer amounts to £10.5m due to the business being reinsured.
The company has £114bn in total funds, 500,000 policies will be moved as Mr Justice Snowden, of the High Court approved the move Tuesday.
Justice Snowden said in his judgement, “In common with many other financial institutions, Royal London is concerned that in the event of a ‘no-deal’ Brexit it will lose the ‘passporting’ rights which currently enable it to rely upon its authorisation in the UK to carry out regulated activities to service its policyholders in other European Economic Area member states.
“To address this possibility, Royal London wishes to transfer its long-term business with policyholders in the EEA to RLI, which is be authorised and regulated in the Republic of Ireland, and thus able to service the policies concerned after Brexit, whatever form that may take.”
Many banks and businesses have pulled out of London over the last 12 months, this involves hundreds of billions of assets hitting the Treasury’s tax and revenue.
To date, Barclays, Royal Bank of Scotland, Goldman Sachs, Morgan Stanley, Lloyds and many other significant companies have set up hubs across the continent ready for the EU withdrawal.
The capitals reputation as the financial centre has been severely dented.