Operations 2016 Salary Guide

Ross Sailes 25.02.2016

Key recruitment information within the across financial services operations divisions, covering permanent and temporary salaries across London.

Asset/Wealth Management & Private Banking Recruitment

Large pool of talent emerging from back office

Performance analysis proved to be one of the busier areas of recruitment by asset management firms in 2015, particularly in the first half of the year and at senior level in the range £60-85k, with some mid-tier appointments around £40-50k. Professionals combining Fixed Income performance analysis and liability-driven investment experience were in high demand and often difficult to lure into new jobs, as they are typically well paid in their current roles. 

There were many appointments at junior to mid level (graduate entrants up to four years’ experience) throughout the year in the settlements arena. However, a number of firms have offshored these areas, mainly to India and increasingly Poland, and this has dampened down the permanent market for back office vacancies. As a result, there was greater availability of candidates emerging from the back office although it is often difficult for them to make the transition to another role and in many cases they will find it easier to secure an interim/contract position first. 

Preference is given to candidates with a good degree and the IMC qualification (and/or Masters). Employers are sometimes hesitant about appointing anyone with a CFA qualification (within Operations) as these candidates often regard a middle office position with an asset management company as a stepping stone into the front office. The salary range for mid-level candidates is £35-55k depending on the number of years’ experience. A Head of Operations and MDs are likely to earn around £90k per annum (minimum). Asset management firms tend also to pay generous pension contributions and this has to be taken into consideration when trying to incentivise a move.

Banking Operations Salaries

Permanent - London
Salary (£ Per Annum)
Role Analyst 0-2 Years AVP 3-4 Years VP 5-7 Years Director 8-10 Years MD 10+ Years
Relationship Manager 30,000-35,000 35,000-55,000 55,000-70,000 65,000-85,000 80,000+
Client Services 25,000-30,000 28,000-37,000 35,000-45,000 45,000-65,000 65,000+
Client Reporting 30,000-32,000 30,000-35,000 35,000-40,000 40,000-45,000 50,000-80,000
Fund Manager Assistant 30,000-40,000 40,000-50,000 45,000-65,000 60,000-70,000 65,000-80,000
Portfolio Control & Cash Manager 30,000-35,000 32,000-40,000 40,000-50,000 50,000-65,000 65,000-80,000
Performance Analyst 32,000-35,000 35,000-55,000 55,000-80,000 80,000-95,000 95,000+
Transitions Manager 40,000-45,000 40,000-50,000 50,000-65,000 60,000-80,000 70,000-100,000
Fund Administrator 25,000-30,000 35,000-45,000 45,000-65,000 65,000-90,000 90,000+
Valuations & Pricing 30,000-35,000 32,000-38,000 35,000-45,000 60,000-70,000 70,000-100,000
Data Manager 30,000-35,000 32,000-40,000 40,000-55,000 50,000-80,000 70,000+
Business Manager 40,000-50,000 50,000-65,000 65,000-90,000 80,000-110,000 120,000+
 

Onboarding candidates see increased opportunities

2015 saw organisations focus on client implementation more than had been the case over the last five years. Onboarding candidates with knowledge of KYC and AML were in high demand, i.e. operational staff who have had some exposure to compliance issues and can liaise with both new clients and internal sales, compliance and legal teams.

Temporary - London
Rates (£ Per Hour)
Role Analyst 0-2 Years AVP 3-4 Years VP 5-7 Years Director 7+ Years
Client Services 15-18 18-23 23-28 28+
Client Reporting 15-18 18-23 23-28 28+
Fund Analyst 15-20 20-25 25-30 30+
Performance Analyst 16-20 20-30 30-40 40+
Fund Administrator 15-18 18-24 24-30 30+
Valuations and Pricing 15-18 18-23 23-28 28+
Data Management 15-18 18-25 25-30 30+
Reconciliations 15-18 18-23 28-28 28+
Trade Support 15-20 20-25 25-30 30+
Cash Management 15-18 18-25 15-30 30+
Settlements 15-18 18-23 23-28 28+
 

Commodities Recruitment

A slow market

Firms have moved back office functions out of London and there have been a number ofsell-offs in the last 12 months. The London recruitment market is slowing down and salaries are stagnant. There are many candidates on the market who are looking to move into a front office function: becoming a trader is the logical next step once you reach a certain level in commodities trading support. Most of the vacancies were of a junior nature, more senior roles tended to be filled internally unless highly specialised.

Permanent - London
Salary (£ Per Annum)
Role Junior Level Mid Level Senior Level
Head of Operations * * 100,000+
Physical Energy Trade Support 35,000-55,000 55,000-75,000 75,000-110,000
Commodity Derivatives Trade Support 30,000-45,000 45,000-65,000 65,000-90,000
Clearing 30,000-40,000 40,000-60,000 60,000-90,000
Settlements Physical 25,000-45,000 45,000-60,000 60,000-90,000
Settlements Derivatives 25,000-40,000 40,000-55,000 55,000-70,000
Contracts 30,000-45,000 45,000-60,000 60,000-80,000
Documentation (Derivatives) 30,000-40,000 45,000-55,000 55,000-75,000
Collateral 30,000-45,000 45,000-65,000 65,000-90,000
Shipping / Scheduling 40,000-50,000 50,000-70,000 70,000-100,000
Business Analyst 30,000-40,000 40,000-55,000 65,000-90,000
Project Manager * 60,000-75,000 90,000+
Client Services 35,000-45,000 45,000-60,000 60,000-80,000
MIS / Controls 30,000-40,000 40,000-50,000 50,000-70,000
Trade Finance 30,000-32,000 45,000-50,000 65,000-70,000
Vault Operations 25,000-28,000 35,000-45,000 55,000-65,000
Static Data 25,000-35,000 35,000-45,000 45,000-65,00
 

Investment Banking & Brokerage Houses

High focus on loans

Investment banks have traditionally employed large numbers of operations staff in London but many are now looking to relocate to reduce costs, whether this is to other UK regions or abroad.

The loans space was a major focus for recruitment in 2015. A number of major investment banks were looking to recruit expertise in primary origination and loans administration. These candidates are difficult to locate and to incentivise to move as they require very specific knowledge, for example of Loan IQ software. There were plenty of open positions on the settlements side but these tend to be filled internally or directly. This trend will continue into 2016.

Permanent - London
Salary (£ Per Annum)
Role Analyst 0-2 Years AVP 3-4 Years VP 5-7 Years Director 8-10 Years MD 10+ Years
Trade or Sales Support / DeskAssistants
(+ up to £10,000 for Exotic Products)
35,000-45,000 45,000-60,000 60,000-75,000 75,000-110,000 110,000+
Client Services
(+ £5,000 - 10,000 for languages)
30,000-45,000 45,000-60,000 60,000-75,000 75,000-95,000 100,000+
Documentation / Reconciliations / Settlements 30,000-40,000 40,000-65,000 65,000-80,000 80,000-95,000 100,000+
Collateral / Margin Management 30,000-45,000 45,000-65,000 65,000-85,000 90,000+ 100,000+
Clearing (+ £10,000 for OTC Clearing) 35,000-45,000 45,000-60,000 60,000-85,000 85,000-120,000 120,000+
Middle Office Control /
Regulatory Control & Reporting
35,000-45,000 45,000-60,000 65,000-80,000 80,000-120,000 120,000+
Asset Servicing 30,000-40,000 40,000-60,000 60,000-75,000 75,000-90,000 100,000+
 

High demand for regulatory specialists

With deadlines looming, contract rates have been increasing significantly for regulatory specialists with knowledge of MiFID II, EMIR, Dodd Frank etc. It is easy for contractors to increase their day rates by moving on from one contract to another although candidates are generally aware that too many moves in a short space of time can look bad on the CV. Rates range from £250 to £300 per day for a regulatory reporting role rising to the high hundreds within an SME.

Temporary - London
Rate (£ Per Hour)
Role Analyst 0-2 Years AVP 3-4 Years VP 5-7 Years Director 7+ Years
Loans 16-20 20-30 30-40 40+
Client Services 16-20 20-28 28-35 35+
Asset Servicing 16-20 20-28 28-35 35+
Collateral 16-20 20-30 30-35 40+
Reconciliations 15-18 18-25 25-30 30+
Equity / Fixed Income Trade Support 16-20 20-28 28-35 35+
OTC Trade Support 16-20 20-30 30-40 40+
Commodities Trade Support 16-20 20-30 30-40 40+
ETD Trade Support 16-20 20-30 30-40 40+
FX / MM Trade Support 15-18 18-25 25-30 30+
Settlements 15-18 18-25 25-30 30+
Ross Sailes's picture
Manager | Financial Services Operations
rsailes@morganmckinley.co.uk