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Lloyds bank confirms plans to leave Gibraltar for Jersey

File photo dated 04/08/10 of a sign for Lloyds Banking Group, which has confirmed it is to axe 6,240 jobs as part of a digital overhaul. PRESS ASSOCIATION Photo. Issue date: Tuesday November 6, 2018. The high-street lender said that as part of the shake up, it will also create 8,240 new roles, resulting in a net creation of 2,000 jobs. See PA story CITY Lloyds. Photo credit should read: John Stillwell/PA Wire

Lloyds Banking Group yesterday confirmed it will close its Gibraltar operations and relocate to Jersey, in a widely-anticipated move that follows years of scaling back its operations here.

The move is subject to banking licence approval and, according to Lloyds, there is no fixed timing in relation to when the relocation will happen.

But court documents relating to four “frozen” client accounts suggest it wants to complete the migration to Jersey before the UK and Gibraltar leave the EU.

“Lloyds Bank (Gibraltar) Limited will passively service its existing banking customers from Jersey,” a spokeswoman for the bank told the Chronicle.

In relation to the bank’s approximately 20 employees in Gibraltar, Lloyds said: “We managed this process both sensitively and appropriately.”

“We have carried out a consultation with employee representatives, employees and while there was no obligation to consult with unions we engaged with them in good faith in recognition of the constructive role they play in supporting colleagues during this time,” the spokeswoman said.

For its part, Unite the Union said it has been working with the bank in an attempt to find alternative employment within the banking sector for those affected workers.

In June last year, Lloyds confirmed that it had ceased new investment services for clients as part of an ongoing review of its business in Gibraltar.

At the time it explained that this meant there would be no change in the banking services it offers locally.

But the decision to relocate to Jersey was laid bare in documents filed before the Supreme Court and later confirmed to the Chronicle by Lloyds.

Full article in today's print and e-edition.