Private client accounts to be managed from Austrian-based office following concerns of Brexit uncertainty
LONDON, Feb. 18, 2019 /PRNewswire/ -- London-based asset management firm Schwarz Gehard is set to initiate plans to relocate the management of its private client services to their institutional offices located in Vienna, Austria. The move comes at a time when the uncertainty surrounding a Brexit transition deal remains up in the air following a landslide vote against the conservative government's Brexit proposal in January earlier this year.
The privately held asset manager will begin to merge its U.K. entity with their European-based Institutional division ahead of the Brexit deadline of March 29, 2019, resulting in the movement of up to 60 employees as the firm seeks to solidify its presence throughout the European Union. Whilst an office presence will remain at the existing location in London, the firm will begin to focus on an expansion program across the major cities of the EU.
"The relocation plans would now be put in motion as the absence of a workable Brexit deal at this late stage of negotiations will likely have significant operational effects as Schwarz Gehard seeks to expand and continue to serve clients throughout the European Union," said Kieran Blake, Senior Administration Officer at Schwarz Gehard London.
Many London-based firms have in the past chosen the U.K.'s capital as host of their EU headquarters due to the robust regulatory systems and ease of conducting business. In the wake of the Brexit referendum back in June 2016, many city firms have been calling on Brexit negotiations to consider a bespoke approach to safeguard the financial sector across the EU by extending market access to facilitate business across a single market.
"Since Brexit negotiations have broken down on what makes perfect sense in order to maintain London's status as a prominent financial center, it is becoming increasingly apparent that whilst the provision of a single financial market after Britain leaves the EU would dramatically limit disruption to the vast majority of financial institutions, the effects on London's reputation as a world-leading business center are likely to be harmed as more firms begin to relocate their European headquarters," continued Mr. Blake.
Existing clients will be notified of the office relocation and will be provided a detailed report of how the move may affect their position as a client of the firm. Whilst there still remains a level of uncertainty surrounding specific tax implications, clients are being advised to contact their Schwarz Gehard account representative for further information.
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