In this article we take a look at all the latest hiring trends, expected salaries and market upddates in Q3 2017 in the Compliance permanent market.
Hiring within the Control Room has remained steady throughout Q3 across the permanent market. Hiring has focused on candidates at both the VP and director level. Hiring at the VP/director level has focused on candidates who both have experience within control room functions and also research compliance functions. At this level, the control room market has been candidate short and as such, multiple roles can be presented to candidates with typical salary increases of 15-20% being on offer.
Regulation and regulatory change has been top of the agenda for recruitment across the permanent market in 2017. The focus has been towards hiring staff at the senior level and VP level that have expert knowledge of policies and implementing these. In particular, candidates with good knowledge of MiFIDII have been in demand so that the necessary resources are in place in time for its implementation in Jan 2018. Due to the resource need at the beginning of the year, these roles have been quieter coming into Q3 with many positions being filled in H1. In addition, with the advent of GDPR in 2018, there has been an increased demand for professionals with this expertise. Salaries have typically ranged between £80,000 - £120,000 with increases of 15-20% on offer.
During the first half of the year the surveillance market remained quiet. However, the demand has increased in Q3 with a number of roles coming from a number of institutions. The reason why these roles have come about is due to replacement hiring. On the permanent side, hiring has focused on candidates at both the VP and director level with candidates who possess strong product knowledge and previous management experience being of particular interest. Candidates can typically expect an increase of 15-20%.
Compliance monitoring professionals have been in demand during Q3. Both banking and asset management firms have been looking to strengthen in this area. Candidates with thematic monitoring experience remain highly sought after and individuals with audit backgrounds who have moved into a 1st or 2nd line roles have found the market increasingly productive with a range of opportunities. A number of our banking clients were looking for professionals with strong assurance, risk review and assessment experience coupled with the need for cross product monitoring professionals to perform high level, analytical testing and desk review roles. Strong product knowledge monitoring candidates often experienced a 15% - 20% increase in their salary.
Private-Side advisory teams tend to be leaner than the public-side, so the amount of hiring isn't quite at the same level and has remained quiet in Q3. The main desire is for candidates with good general investment banking exposure including M&A, ECM, DCM and research. Firms are also willing to look at strong candidates who have had exposure to the control room and research at a senior level and are willing to transition into a more general private side advisory role. As bonus season comes into play next year the amount of candidates willing to forgo this is decreasing. Strong candidates with relevant exposure could expect to achieve an increase of 15-20% on basic salary to move.
The public-side compliance advisory market has remained buoyant in Q3 but has been mainly on the replacement basis. Most hiring has been at both VP and director level. Candidates with cross product coverage are desirable (credit, rates, FX and commodities) but firms will also look at candidates who specialise in one particular product. Equities has remained slightly quieter and less buoyant. Firms that are hiring/have hired within this space have been on more of a replacement basis. Strong candidates with relevant product knowledge/exposure could expect to achieve an increase of 15-20% on basic salary to move.
General AML vacancies have been the focus of mid sized firms predominantly in Q3 as larger firms continue to split responsibilities into more specialist positions. These vacancies have largely been at the AVP/VP level and encompass, sanctions, transaction monitoring, EDD responsibilities and advising the business on AML policy. In addition, there has been an increased demand for Senior VP/director level candidates that can provide advice to the business on AML matters in large wholesale banks. For permanent opportunities, salaries range from £50,000 - £75,000 for AVP Level and £75,000 – £120,000 for VP/Senior VP Level.
The permanent market has been fairly busy with a number of firms hiring on both new business and onboarding positions in Q3. The struggle has been that candidates are hard to find which is due to the difference between permanent salaries and contractual daily rates. Candidates who understand the full start-to-finish onboarding process and have a good understanding of corporate entities are of particular interest. In addition, there has been hiring for KYC candidates who are able to interact with the front office. However, hiring for typical KYC opportunities has been on a replacement basis. Candidates can expect a 15-20% salary increase and we expect the market to remain fairly similar going into Q4.
Q3 continued to be a busy recruitment market for us here at Morgan McKinley, in particular compliance hiring into asset management / buy-side markets. Following suit from H1, buy-side clients continued to hire and bolster their teams to ensure they’re fully prepared for upcoming regulations, such as MiFID II. In addition to this, there were also many replacement hires as many professionals tend to move roles throughout Q3.
Private equity firms, small, medium and large have been arguably the busiest this year and this is common throughout Q3. The small/medium sized organisations have historically allowed compliance to sit within wider functions such as finance, tax or the wider middle office, however these firms either hired a compliance professional to lead the compliance function or a mid-level professional to take on all day to day duties, with the CF10/11 function remaining with the current incumbent.
In addition to the above, there have been many professionals’ move roles throughout Q3. This quarter tends to be one of our busiest; prospective employees are keen to move positions after receiving bonuses in Q1/Q2 and many employers are keen to hire in Q3 before we move into the end of the year.
The main in demand skill sets for asset management regulatory professionals in Q3 were: