BERLIN, July 3 (Xinhua) -- German policymakers had vowed to grant "high risk takers" in banking sector the exceptions from local labor laws in a further bid to lure business to Frankfurt in the wake of Brexit, the Financial Times reported on Monday
Japanese investment bank Sumitomo Mitsui Financial Group (SMFG) revealed on Monday that it is joining its compatriot firms Nomura and Daiwa in choosing Frankfurt as the site of its European Union headquarters after Britain's exit from the European Union.
The SMFG said it has filed for regulatory approval and now awaits the decision of financial authorities.
The two largest Japanese brokerage houses, Nomura and Daiwa have recently declared moving to Frankfurt as well.
British-based banks are widely expected to lose the "passporting" rights which currently grant them unrestricted access to the EU's single market, when Britain leaves the bloc.
The British financial services lobby group TheCityUK estimates that 70,000 jobs could be lost in the industry if Britain does not remain in the single market, while London Stock Exchange Chief Xavier Rolet put the figure as high as 270,000 in the event of a loss of euro-clearing.
According to data published by Bloomberg, international banks have confirmed their intention to move 2,600 staff from Britain to Frankfurt in Germany so far. The figure makes the German city the current front runner ahead of Paris (1,000) and Dublin (150).
The German labor code is seen as a barrier by many financial institutions. The requirements to lay off staff are high, and fired employees are usually entitled to large payout.
After originally proposing a general change to labor laws, German authorities have now shifted their position to exempt "high risk takers" working in financial services instead.
Thomas Schaefer, minister of finance in Frankfurt's home state of Hesse, told the Financial Times that it "turns out that a solution which is tailored to the needs of credit and financial services institutions clearly finds more support than a general, income-related solution."
"Banking regulation explicitly defines the risk bearers in such institutions, which provides an ideal starting point. The government of the state of Hesse anticipates that relevant legal changes may be possible following the German parliamentary elections this September, at the latest by autumn 2018."
