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Luxembourg Market Overview Q3 2018

• Article by BRUIN Financial

Luxembourg Market Overview Q3 2018

MARKET OVERVIEW

In response to Brexit, much like our clients, as a firm we have broadened our reach to service roles for our London clients in Luxembourg, Paris, Dublin and Frankfurt.  Although Brexit is yet to make a significant impact in detracting the amount of jobs in the UK market, we have seen a steady flow of our clients looking to hire on the continent. With this shift comes a need to understand the job market in these locations specifically when it comes to candidate profiles and the packages offered in mainland Europe.

Candidate Profiles

There are a number of differences between benefit packages offered in the UK and Luxembourg. Meal vouchers for example, are a must, which can be valued at up to €11.00 per day for lunch. For junior candidates it is fairly common for organisations to pay half of their rent to lower the cost of living. At the senior end, employees will often commute into Luxembourg from more family friendly locations with more schooling options, such as Brussels.

There is also a significant different in notice periods.  Luxembourgish employment law caps this to 1 month up until 5 years service, and after 5 years it goes to 2 months and no higher. Having 3 months notice is unheard of in Luxembourg, whilst it is fairly common in the UK .

With Brexit looming, we have found a lot of high calibre candidates working in London, both with UK and other EEA Passports are now more open to

moving to mainland Europe for a role. For  many candidates currently based in Luxembourg moving to the UK is still their number one priority, but some have said because of Brexit they were more likely to remain in Luxembourg or perhaps focus their search in Paris, Zurich or Belgium.

Market trends

Credit & Risk Management

BRUIN contact: Amy Brown

Investment Risk is particularly active, with a lot of our Asset Management clients, Schroders, M&G, BlueBay AM, Wellington and Jupiter AM to name a few, expanding their teams out in Luxembourg.  We have been working on positions across a range of seniority levels, from Grad/Junior level roles, up to Risk Manager and Conducting Officer. However, a the volume of roles appears to be more at the junior end from around the 3-5 years experience and for all levels familiarity with UCITS and AIF funds is a must.

Finance & Accountancy

BRUIN contact: Andrew MacKay

The main area of focus for our clients with a presence in Luxembourg is Fund Accounting and Tax. We have seen a large number of clients move these areas out of the UK, with location specific skills sets such as Luxembourg GAAP and Luxembourg Tax in particular demand as a result. We have also seen firms move other related roles such as Internal Audit and Financial reporting to Luxembourg.

Compliance

BRUIN contact: Will Brown

Over the past few months, BRUIN have successfully worked on a number of mandates in Luxembourg, and the Compliance space has been particularly buoyant. Firms have been reassessing their strategies, and Luxembourg is a prime location in which firms will be bolstering headcount. As a result, they will need the correct controls in place from a Compliance perspective and are therefore investing heavily in their Compliance teams.

Traditionally we have found that firms in locations such as Luxembourg have much smaller compliance teams, often with one person operating in a stand alone capacity covering all aspects of Compliance, but as physical presence and regulatory scrutiny increases, we are seeing much higher demand for ‘mid-level’ Compliance Managers who have 3-6 years experience within specific areas, across Financial Crime and Regulatory Compliance.

Sales & Marketing

BRUIN contact: Georgina Sell

As investment management firms expand their presence in Europe; there has been a need for marketing strategies and messaging to be tailored to local and broader European audiences; this is for both client Institutional and Wholesale channels.  There has also been a greater demand to document, adapt, monitor and advertise offerings through investment writing pieces and formal RFP documentation.

Projects & Change

BRUIN contact: Ellen Clarke

Q3 saw a continuation of many of the trends we had seen previously; process re-engineering, Robotic Process Automation and Artificial Intelligence still prominent in the market across Europe. Firms are particularly interested in the implications of using machine learning and how this impacts the ethical use of client data. There have also been a growing amount of roles focusing on enhancing consumer interaction. Updating or creating new platforms to be accessed directly by the consumer have been key projects being undertaken on the buy side.

Looking forward to Q4, this is likely to be a pivotal time of reflection for London centric firms as they assess their footprint across Europe and where the best talent is. There may be a call to further grow teams in prime European locations but companies will need to consider whether they can find the appropriate talent in these areas as competition will be high.