Northern Trust to set up post-Brexit banking hub in Luxembourg
Financial services firm Northern Trust is to create a new EU banking base in Luxembourg in the wake of Britain's decision to leave the bloc.
The 100-year-old Chicago-based company joins other financial firms such as AIG, RSA and Hiscox in choosing the Grand Duchy as their new EU hub to ensure they can continue to service their continental clients after Brexit.
Between 1,000 and 1,500 people are currently employed in Northern Trust's office in London's Canary Wharf. The company did not disclose whether any of these jobs would be relocated to Luxembourg as a result of Wednesday's announcement.
Northern Trust currently has 140 staff in Luxembourg.
It also has a large presence in Ireland, where it employs more than 1,000 people, and last month announced plans to add an extra 400 roles in Limerick over the next five years.
Northern Trust undertook a comprehensive review of both Ireland and Luxembourg as potential locations for its EU branch. However, it concluded that Luxembourg offered the best growth opportunities following its recent acquisition of UBS asset management's fund administration services in Luxembourg and Switzerland.
London will remain its regional headquarters for Europe.
In a statement, Teresa Parker, president of Northern Trust's EMEA operations, said: "Continental Europe is a strategic area of focus for Northern Trust and the creation of our EU banking presence in Luxembourg highlights our commitment to growing our business in the region."
Nicolas Mackel, head of lobby group Luxembourg For Finance, said: "We are delighted that Northern Trust, one of the world's biggest financial services companies, has chosen Luxembourg as a base to expand within the EU."
He added: "Its decision is further recognition of the cross-border expertise and crucial strategic position of Luxembourg for non-EU financial services companies."
The company, which has operations in 22 international locations including London, had assets under custody of 7.1 trillion dollars (£5.5 trillion), and assets under management of 1 trillion dollars (£770 billion) as of March 31.