Citing a source familiar with the matter, Reuters said the UK lender has engaged in preliminary talks with regulators, with the goal of setting up shop in the landlocked country to cater to EU-based closed-book policyholders of life and pensions firm Scottish Widows.
According to the news agency’s source, establishing the Luxembourg unit will not see the relocation of workers from the UK but the hiring of a new team to man the Lloyds Bank subsidiary – the third brought about by Brexit on top of the main one in Berlin and another in Frankfurt.
Back in June the EY Financial Services Brexit Tracker showed Dublin, Frankfurt, Luxembourg, and Paris as the top destinations. At the time EY said most of the firms which picked Dublin were asset managers while Frankfurt has proven popular among lenders.
