JP Morgan U-turns on Brexit jobs warning

JP Morgan has backtracked on a warning made ahead of the Brexit vote that up to 4,000 staff would have to relocate as a result of the UK leaving the European Union.

The Telegraph reports that in a letter sent to the investment bank’s shareholders, JP Morgan chairman and chief executive Jamie Dimon said the company will be able to service European clients from the UK with appropriate regulatory permissions.

He said: “This does not entail moving many people in the next two years.”

Last June Dimon gave a speech alongside former chancellor George Osborne warning that thousands of its 16,000 UK jobs could be moved in the event of a Brexit vote.

In his latest letter to shareholders, he says: “We are confident we will be able to develop and expand the capabilities that our EU subsidiaries and branches will need to serve our clients properly in Europe under EU law.

“While this does not entail moving many peple in the next two years, we do suspect that following Brexit, there will be constant pressure by the EU not to ‘outsource’ services to the UK but to continue to move people and capabilities into EU subsidiaries.”