As the UK historically triggers Article 50, Lloyd’s of London have reportedly reached a decision to move its European subsidiary to Brussels in the wake of Brexit.
The insurance market, which has been in operation since 1688, have been considering various alternative locations in light of the UK’s decision to leave the European Union.
Chief Executive John Nelson has been vocal regarding his opposition to Brexit, in particular stressing the significance of securing passporting rights, which allow financial businesses to operate in all 28 EU member states.
In an interview last year with the BBC Today programme, Nelson warned that if the Government failed to safeguard its access to all European markets.
“It won’t be Lloyd’s losing out, it will be the UK,” he warned.
In February, Theresa May conceded that access to the single market may indeed have to be sacrificed in order to proceed with leaving the EU bloc.
Lloyd’s shortlist of six locations had been reduced to Brussels and Luxembourg, after initial considerations of Dublin, Frankfurt, Malta and Paris. European cities such as Frankfurt and Paris, which already have a strong presence in finance, have been particularly active in attempting to encourage the city financial sector to re-locate.
It has been suggested that a sizeable portion of Lloyd’s of London employees may be relocated to the Brussels location once the move has been finalised. However, details have yet to be formally clarified and a statement on the decision is expected to be announced tomorrow.
The decision comes after Prime Minister Theresa May signed a letter formally triggering Article 50, beginning the process of withdrawing from the European Union. The highly anticipated event has been the focus of media attention since the June referendum result, but given its unprecedented nature it remains to be seen how negotiations will progress.
Read about what may happen following Article 50 here.