BOURNEMOUTH’S biggest private employer JP Morgan is not preparing to shed UK jobs – despite reports that it could be transferring business out of the country, the Daily Echo understands.

The banking giant was, along with HSBC, reported to be in discussions about relocating parts of its business to Luxembourg, according to The Times.

It said JP Morgan was “close” to setting up a new Luxembourg-based bank to handle the clearing of eurozone transactions. It said this could provide the stepping stone for the company to move more business out of the UK in the event of a British exit from the European Union following the planned referendum.

Any move to transfer business out of the country would cause alarm in Bournemouth, where JP Morgan employs more than 4,000 people.

But the Echo understands the developments being mooted in Luxembourg – where the bank already employs 700 staff – would not involve moving work out of the UK or relocating jobs.

JP Morgan has not commented on the reports.

The bank has been in Bournemouth for more than 28 years. Its base in the town is a technology and operations centre supporting activity in more than 90 markets across more than 40 countries.

Last year, it announced it would spend £28.6m improving the Bournemouth site, following a £10.7m investment in infrastructure there in 2011.

The announcement came in a statement in which chief executive Jamie Dimon said the bank was proud to be an “active member of the Bournemouth community”.

Simon Cooper, JP Morgan chief administrative office Bournemouth site leader, said last year: “Our employees in Bournemouth are an integral part of the global operations of our firm, and our commitment to continually investing in their work is unquestionable. This commitment is something that those of us who live and work here see every day.”

The Times also reported that HSBC was thought to have told the Treasury it was considering moving its headquarters to Luxembourg.

HSBC announced in April that it would review whether to keep its headquarters in London amid concerns over the UK bank levy, new regulation and the possibility of Britain leaving the EU. But JP Morgan has avoided commenting on those controversies.