Figures released by financial services consultant Synechron Inc found that 55% of British banks had launched their own committee to discuss, among other issues, the possibility of relocation.

This possibility was reinforced by data showing that 78% of capital markets executives believed that Brexit will have a negative impact on UK financial markets. 

Tim Cuddeford, managing director at Synechron Business Consulting, said: “Banks are no longer waiting for the government to trigger Article 50 and have begun setting up steering committees to plan for life outside the European Union, with some already considering relocating staff to other cities around Europe.

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“While Brexit poses an unforeseen challenge for financial institutions, the prospect of rising compliance and huge relocation costs appear inevitable.”

Of all senior British capital markets executives surveyed, 56% believed that compliance costs would increase following Britain’s departure from the EU.

Synechron calculated that relocating to another European financial centre would cost on average £50,000 per employee.

Regardless, some 72% of bankers believed London would still be the financial centre of Europe in five years’ time.

Meanwhile, 82% of senior capital markets executives claimed that the EU itself would be negatively impacted by Brexit.

Joost Loves, managing director of Synechron’s Amsterdam division, added: "While the UK focuses on the impact of Brexit on London, undoubtedly, Brexit will also have a rippling impact on continental Europe as well.

“Businesses are evaluating their global footprint in other key markets like Frankfurt, Amsterdam, France and others, and the workforce composition in these cities are likely to change. 

“And, perhaps most importantly, the rift between the UK and continental Europe is likely to widen."