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Copenhagen is the latest EU city attempting to attract financial talent away from London post-Brexit.
The Danish capital is taking aim at asset managers and fintech firms, according to a report from the Financial Times.
Denmark’s financial lobby has dispatched a delegation to the UK this week with the aim of attracting asset managers like Blackrock, as well as major US banks with big asset management arms, such as JPMorgan, Goldman Sachs, and Morgan Stanley.
“Brexit is a reality,” Brian Mikkelsen, Denmark’s minister for industry, business and financial affairs, said. “Some UK-based companies would like to locate themselves within the EU. We would be happy to welcome these companies in Copenhagen.”
“We are very committed to having an attractive financial services sector. My aim is to cut out the bureaucracy and red tape and the burdens for the financial companies,” he added.
Copenhagen is believed to be using the size of its pensions industry, as well as the city’s status as one of the “best” in the world to live, to try and woo financiers currently based in London.
“You couldn’t imagine a better place to work or a better place to live for your family. We will remove some of the regulation,” Mikkelsen told the FT.
Cities across Europe are currently battling to attract finance firms looking to set up new EU arms once Britain leaves the European Union.
Banks, asset managers, and insurers are currently assessing their options when it comes to Brexit. Most lenders from Japan and the USA currently have their European bases in London but are expected to shift those operations to continental Europe to maintain an EU presence after Brexit.
Britain is expected to lose financial passporting rights after Brexit, which allow banks with a base in the UK to sell products and services to customers and financial markets across the EU.
Dublin, Frankfurt, and Paris – as well as Luxembourg for insurance companies – are currently front-runners in attracting talent, but other cities – including Copenhagen, Poland’s capital Warsaw, and Madrid – are also looking for a slice of the pie.
“It will be a very [close decision for companies] between moving to Copenhagen or some other cities,” Mikkelsen said. “Many large banks have already decided where to [move after Brexit], but there are still a number of players that could find great value in looking to Copenhagen when considering alternatives to London,” Allan Polack, former chief executive of Nordea Asset Management said.