Amsterdam Could be Winner of City Exodus After Brexit

Amsterdam is in talks with major financial institutions based in the city of London about their imminent relocation to the Dutch capital, but its deputy mayor has warned the national government that the country’s strict cap on bankers’ bonuses could put it at a disadvantage in the Europe-wide scramble to capture Britain’s financial sector.

The Amsterdam mayor’s office has been in negotiations with American and Japanese banks, along with fintech firms and other specialist finance firms, about moving staff and operations from London as a consequence of the UK’s vote to leave the European Union, the city’s deputy mayor told the Guardian.

Kajsa Ollongren, who is responsible for economic affairs, said she expected decisions in favour of relocation to be made within the first or second quarter of the year.

However, Ollongren said the Netherlands’ imposition of a cap on bankers’ bonuses at 20% of their annual salary was being raised by companies in the financial sector during talks. The EU has capped bankers’ bonuses at 100% of annual salary, but the Netherlands opted to impose a much lower limit in 2015.

Ollongren, who is a member of the liberal D66 party, said: “That there is a cap on bonuses is a very good idea. But the fact is, there is a European cap and there is a Dutch cap. And the Dutch cap is much lower than the EU cap. I am now responsible for acquisitions and for getting companies to come to Amsterdam, and that is in a way – and I can understand it – a difficulty.”

via The Guardian

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza