Brexit, ten years on: how the financial sector grew despite all odds

In the wake of the fateful referendum that resulted in the United Kingdom's decision to leave the European Union, there was no cause for celebration in the financial sector. "Our initial reaction was one of deep disappointment at losing such an important ally as the UK at the European negotiating table, from the perspective of the financial industry as a whole and the asset management sector in particular, " recalls Serge Weyland, CEO of Alfi, the professional association for the fund industry in Luxembourg. "At the time, we had identified a real risk that the European financial sector would suffer as a result, " adds Jerry Grbic, CEO of the ABBL, the professional association of Luxembourg's banks. "Everything has become more complex, as indeed it has in other sectors of the economy."

Whilst Brexit might have led one to believe there would be a mass exodus of business and jobs from the City to other EU centres, with competition expected between Paris and Frankfurt, this was not the view in Luxembourg. "Many said that Paris would gain 10.000 jobs, that we would see a mass exodus of bankers from London…", recalls Tom Theobald, CEO of Luxembourg for Finance, the financial centre's promotional agency. "We always said that this would not happen in that way, but that it would involve several financial centres across Europe rather than just one, and that it would lead to a strengthening of local teams through local recruitment or the arrival of a head of business line from London or even other entities within the group. And that is exactly what we have seen."