France is aiming to boost Paris' attractiveness as a European Union finance hub, as President Emmanuel Macron plans to bolster a series of Brexit-fuelled relocations.

According to sources, the government is planning to revise certain rules and introduce measures as early as 2024.

The primary aim of the initiative is to build on the success of Paris's attraction of major US banks such as JPMorgan Chase & Co. after Brexit. Their move from London led to the creation of thousands of jobs and boosted the president's reputation as a pro-business reformer, Bloomberg reports.

Following the initial wave of relocations, France's government now plans to amend the entire value chain in financial services, according to officials.

"We will stick to our strong commitment and carry on unfolding competitiveness reforms to attract new financial firms in Paris," said the country's Finance Minister Bruno Le Maire.

The government hasn't as yet decided whether legislation would be needed, as the raft of measures is still in the early stages.

Yet certain financial institutions are using this opportunity to lobby for change, such as amending France's tax exemption system within the "impatriation" regime, say sources. Banks are pressing for transferable benefits when staff seek new employment within the country to simplify searching for talent.

The government is aiming to underscore its reputation for stability since Macron introduced a number of pro-business modifications increasing the flexibility of labour laws from when he took office in 2017.

"On the labour market itself, we've done some pretty significant reforms. We could look for adjustments, but in the main part, it's above all important to not call into question the changes that have been made," said former Bank of France governor, Christian Noyer.

As it stands, several organisations from Asia, the Middle East, Canada and Australia are seeking relocation to Paris. Indeed, according to National Australia Bank (NAB), which established its Paris hub in 2022, the location helps to cater to burgeoning demand from EU clients.

"NAB has held a significant presence in Europe for decades. We are partnering with a large and growing number of investors and clients as they become more active in the region," said chief executive officer of NAB Europe Nicola Jolley.

Furthermore, a number of US hedge funds are currently acquiring their licence with the country's regulator, Autorite des Marches Financiers.

 

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