Daiwa investment bank to site its new EU subsidiary in Frankfurt

Japanese investment bank Daiwa has confirmed that it has settled on Frankfurt as the location for its new EU subsidiary in a move that is likely to see a number of London staff relocated to Germany.

Daiwa Securities Group confirmed on Thursday that it is making a license application to German regulator Bafin, which is expected to be submitted by year-end.

This means its Frankfurt subsidiary will be up and running after 2017, but before Britain officially leaves the bloc in March 2019.

A translation of the group's press release said: "Daiwa Securities Group, Inc. announced today that it has decided to establish a new subsidiary in Frankfurt am Main (Germany) and will make a license application to the German regulator accordingly."

"This arrangement will ensure that Daiwa can continue to service its clients in EU (Europe Union) after the United Kingdom leaves the EU."

The Press Association understands that the Frankfurt operation is expected to start with less than a hundred employees, staffed by a mix of local hires and transfers from other locations including London and Japan.

Daiwa has around 450 employees across Europe, most of which are based in London - which will remain its regional headquarters.

The Japanese firm said in January that it had been working with consultants and was considering both Frankfurt and Dublin as locations for a new subsidiary, before settling on the German city which is widely expected to be the main beneficiary of a London banking exodus.