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Compliance

COMPLIANCE MARKET COMMENTARY, Q3 2017

• Article by BRUIN Financial

COMPLIANCE MARKET COMMENTARY, Q3 2017

MARKET OVERVIEW
Q3 is a typically quieter time of the year from a hiring perspective, however 2017 has been extremely buoyant. Requirements from clients have seen a steady stream of job flow from Q2 as the constant high demand in Advisory and Monitoring candidates overlapped into Q3.

As the FCA increased its focus on buy side clients, Asset Management firms sought to expand their compliance functions, with particular demand for candidates with MiFID II experience, as the January implementation date starts to come in to effect. However, the market continues to be very much candidate driven. The battle to secure the best of the best results in top tier candidates being involved in multiple processes at a time, forcing firms to increase total compensation in order to secure the perfect candidate.

From the contract perspective we have seen an increase in guideline monitoring/coding roles. Due to a severe shortage of candidates in this area numerous asset management firms are now prepared to be more flexible, often accepting candidates with 6-12 months of experience and offering attractive of daily rates.

ROLE PROFILES
Compliance Monitoring – Asset Managers continue to expand in this are which is notoriously candidate short, and as a result are increasingly open with their requirements. Many of our clients are now prepared to look at individuals from Investment Banking or Consultancy background as long as the candidate understands the monitoring methodology. Candidates with 4/5 years experience are very sought after with salaries ranging from £60,000-£90,000 per annum.

Compliance Advisory – We have seen movement across the Fixed Income space within the Investment Banks at the Director level and above. There has also been a steady flow of activity in the top tier Asset Management firms at the Vice President level with majority of the roles released as 12 month Fixed-term contracts.

Guideline Monitoring – Continues to be the area with the most turnover, largely affected by permanent candidates moving into contract roles There has been rumours that roles in this area will become more varied to add more depth which will help in candidate retention. For example, adding pre & post trade monitoring, coding, and project related work.

Financial Promotions – There has been a large number of Distribution/ Financial promotions roles across both permanent and temporary divisions, with the majority of the hiring has been at £50,000 – £70,000.

Private Bank/Wealth – We have seen a substantial amount of recruitment activity from some of the larger wealth managers across various levels of seniority. Previously most firms recruited experienced compliance generalists, but the trend is now moving towards candidates with a specific skillset within the wealth market.

Asset Management Generalist – By comparison to the rest of the year, Q3 has been relatively quiet as clients seem to have shifted their recruitment focus on to other areas of Compliance.

REGIONAL RECRUITMENT
Q3 has been a very busy quarter for our regional offices. In fact Compliance has seen a 25% increase in job flow in comparison to Q2.

HSBC and Deutsche Bank have continued to build their Surveillance teams in Edinburgh and Birmingham with lots of activity across Associate level. In addition Deutsche Bank also added Compliance and Control Room Analysts to their growing Compliance department in Birmingham.

Going forward we predict the hiring volume to continue into the early parts of Q4. However imminent hiring freezes will take come into affect which will soon slow do recruitment across all levels. Historically speaking the market slows down in the months leading up to Christmas due to holidays and bonuses.

PREDICTIONS
We predict that Q4 will start with high volumes of permanent roles as firms look to complete their hiring plans by the end of the year. In addition, there are 3 key areas in which firms are boosting their headcount – Mifid II (due to the ‘go live’ date in 2018), Data Protection (as a result of the impending GDPR regulation) and in some cases we are seeing an increase in firms putting together ‘Brexit’ teams. However, whilst there is high volume of hiring, unfortunately the realisation of bonuses makes moving roles less appealing during Q4 every year. As a result, firms with the capacity to buy-out bonuses or offer assurances around bonuses for 2018 will be better placed to secure the best talent.

From the contract perspective we believe recruitment levels will remain steady going into the Christmas period. However in key areas of growth within Asset Management such as Guideline Monitoring, Financial Promotions and Compliance Advisory, we anticipate an increase in daily rates as competition intensifies. We have already seen firms offering increased daily rates in order to secure and retain top tier talent