corporate governance recruitment market report ......governance market reports since 1990. we...

Corporate GovernanceRecruitment

Market ReportCompliance

2017

Contents

BARCLAY SIMPSON 2017 MARKET REPORT COMPLIANCE

1 Introduction 3

2 At a glance 4

3 Executive summary 6

4 Market analysis 8

5 Key conclusions from employer survey 10

6 Market commentary 12

7 Salary guide 20

8 Employer survey results 24

9 About Barclay Simpson 30

OfficesLondonNew YorkDubaiHong KongSingapore

DisciplinesInternal AuditRiskComplianceSecurity & ResilienceLegalTreasury

2

Barclay Simpson has been producing corporate governance market reports since 1990. We produce two reports each year. This one, summarising and analysing recruitment trends in the compliance recruitment market, is supplemented by an employer survey. Later in the year we will be producing our compensation and trends report, which will focus primarily on remuneration and will again be supplemented by a survey of compliance professionals registered with Barclay Simpson. Comparable reports exist for all other areas of corporate governance. They can be accessed in Section 9 of this report (“About Barclay Simpson”) or at www.barclaysimpson.com

We place great value on the professional reaction to our reports and would appreciate your comments and any further requests for clarification or information.


Introduction

Welcome to Barclay Simpson’s 2017 Compliance Market Report

3

1


4 5Section 2 | At a glance Section 2 | At a glance

At a glance 2Positive start to 2016Stable economyRecruitment healthy

2016

KEEP CALM AND

CARRY ON

201723.6.16 Brexit

Business growth likely to drive recruitmentPlacement rate falling

Brexit negotiations

Continued demands of regulation ▶Evolving financial services industry ▶

Recruitment becoming less difficult

Increase in candidate availabilitySalary expectations moderating

Marginal slowdown in activityCompanies recruiting internally

Budgets still under pressure

Business almost

as usual

The Compliance recruitment market 2016-2017

Optimism CautionImmediate

impactless than expected

Economy stronger than forecast Headwinds likely in 2017

Compliance recruitment still strong

100%

90%

80%

70%

60%

50%

40%

Placement rate

100%

80%

60%

40%

20%

0 79%

Yes

59%

Yes

Difficulty in recruiting

UK GDP growth rate 2.3%

UK inflation rate 1.6%

Wheels still turning

£ ?


2015 2016

Dec2015

Jun2016

86%

72%

UK forecast GDP growth rate 2.0%

UK forecast inflation rate 2.8%

Increase in average earnings 2.8%

Forecast increase in average earnings 2.5%

Executive summary

6

Brexit, so far so good?Our market report in July was released immediately after the vote to leave the EU. At the time, possibly rashly, we predicted that by the time our 2017 report became available, the consequences of that decision would be better known. Unfortunately, six months later, what might practically be achieved in exit negotiations is not clear.

This report focuses on employment. Whilst the anticipated Brexit inspired recession has not occurred, the UK is about to start negotiations to leave the EU, an action that even those who support Brexit recognise will do short term damage to the economy. Given this, from our perspective as recruitment consultants, the key to a successful Brexit will be to avoid any serious self-inflicted economic damage.

What is the main threat to jobs?Nobody should doubt, particularly those looking to negotiate Brexit on behalf of the UK, the value of the financial services industry to the UK. The largest fifty financial services groups contributed over £70billion in taxes in 2016 and the industry as a whole exported £20 billion of services to the EU. However, whilst much is made of other European cities preparing to purloin business away from the City, it is hardly a risk-free option given that London has a critical mass, talent pool and infrastructure that is to be found nowhere, other than in New York. A move towards deregulation and lower costs in New York is possibly a bigger threat to London than either Paris or Frankfurt. Clearly it will be some time before the consequences of Brexit are known. What we do know is that it has the potential to cost jobs not only in the City, but also in support functions around the UK.

Industry disruption In the meantime, the financial services industry in the UK is undergoing a period of technological disruption. It is possible that the number of people working in the industry is more likely to fall, not as a result of Brexit, but as the industry recognises the opportunities created by technology and the looming threat to the existing establishment from Fintech and a whole myriad of innovative start up financial services companies. London has the expertise, entrepreneurial attitudes, collaborative institutions, savvy investors and even regulators committed to competition and innovation, which all help contribute to a unique ecosystem. For compliance professionals, this revolution is creating significant opportunities.

Positive response to survey Given Brexit, more uncertain times and the disruption taking place, the responses to our survey make more positive reading than we might have anticipated six months ago. Recruitment budgets have not collapsed, compliance departments report they are as under-resourced as ever and a surprisingly high number recruited in the last six months of 2016. Their recruitment plans for 2017 remain broadly positive. Compliance departments even report they are finding it easier to recruit.

Headwinds in 2017Economic growth and particularly employment have been far stronger post Brexit than all but a few predicted. However, it is likely the economy will be facing some steady headwinds in 2017. Rising inflation could also have some interesting consequences for salaries in compliance.

Section 3 | Executive summary

3BARCLAY SIMPSON 2017 MARKET REPORT COMPLIANCE

7

Recruitment budgets have not collapsed; compliance departments report they are as under-resourced as ever and a surprisingly high number recruited in the last six months of 2016. Their recruitment plans for 2017 remain broadly positive.

Section 3 | Executive summary


Market analysis 4

8 Section 4 | Market analysis

VacanciesFinal quarter increase in the number of vacanciesSix months ago, the anticipated recovery in demand that a vote to stay in the EU was supposed to create, did not materialise. The immediate uncertainty caused by Brexit resulted in a hiatus where the value option of doing nothing was taken by both candidates and clients. Fortunately, with economic Armageddon avoided, the compliance recruitment market recovered and in the final quarter of 2016 benefited from a period of catch up as recruitment freezes were lifted and otherwise postponed recruitment was initiated. Despite this, the overall number of vacancies generated was lower than in the comparable period in 2015.

The most striking trend, not only in compliance recruitment, but also in the wider corporate governance recruitment market, has been the displacement of demand away from top tier investment and retail banks to the wider financial services industry. Many of these banks continue to rationalise as they shrink their costs. The regulatory environment that developed in response to the financial crisis and the cost it imposes, has in part led to structural changes in the industry and the emergence of new providers in almost all sectors. These range from Fintech companies that offer personal loans, mortgages, payments and remittances, across commercial lending, foreign exchange, asset based finance, digital banks and more. To the benefit of those who make their living out of compliance, this whole myriad of start-ups, in various stages of their evolution, will potentially require their expertise.

New vacancies Closing vacancies

Dec2012

Jun2013

Dec2013

Jun2014

Dec2014

Jun2015

Dec2015

Jun2016

Dec2016

140

130

120

110

100

90

80

70

60

50

40

30

20

10

0

A further source of demand is from the insurance and particularly the asset management sectors as they come under greater regulatory scrutiny. They are now more likely to drive demand than the once all dominant banking sector.

One current trend is the proportionately higher number of junior vacancies being generated by bigger, more established banks and financial services groups. Whilst cost is a driver, so is the changing relationship between compliance and other areas of corporate governance. This reflects a desire to promote internally and backfill the resulting junior vacancies.


9Section 4 | Market analysis

Rate of placementsCompliance candidates becoming more availableTo provide a better insight into the dynamics of the recruitment market, this graph plots the rate at which placements have been made across the last four years. It reflects the rate at which candidates are accepting offers of employment.

We reported in 2016 that the rate of placements had slowed, as recruiters became more cautious. This was evidenced by interminable recruitment processes and was not helped by a higher proportion of more junior vacancies where there are invariably fewer potential candidates. Whilst still slow by recent standards, the rate of placements has increased. In-demand compliance professionals with highly specific skills remain scarce. However, compliance professionals, as our survey confirmed, are more generally available; and they are also taking a realistic attitude to what they can potentially achieve in the recruitment market.

The rate of placements is also currently being helped by a higher proportion of those companies with vacancies actively looking to fill them. The explanation is to be found in the shift in demand away from well-established banks and into smaller, often more outwardly entrepreneurial groups. If a bank already employs a hundred compliance professionals, they can simply delay recruiting. Smaller, often rapidly growing groups, go to the recruitment market because they need to recruit. This is reflected in their recruitment processes which are usually streamlined and effective. They are also more likely to be seeking generalists to join a small team. Both the broader nature of the role and benefits package can potentially be moulded around the preferred recruit.

These companies are more likely to treat potential recruits and even their recruitment representatives as prospective customers, which in part is reflected in their higher offer acceptance rates. Many established, larger financial services groups simply fail to communicate effectively between the ultimate decision maker and the candidate they might otherwise wish to recruit. Recruitment consultants are often excluded from a process they could facilitate and add value to, whilst smaller entrepreneurial groups benefit from rarely having such inhibitions.


100%

90%

80%

70%

60%

50%

40%Jun

2013Dec2012

Dec2013

Jun2014

Dec2014

Jun2015

Dec2015

Jun2016

Dec2016

Placement rate

10 Section 5 | Key conclusions from employer survey

Key conclusions from employer survey 5Departmental resources improving but still under pressure• Only 44% of compliance departments believe they are “sufficiently resourced for the demands

that are made on it” (up from 32% in 2015)

The compliance recruitment market remains buoyant. It is encouraging that the number of compliance departments reporting they are finding it easier to recruit increased during the course of 2016. Whilst recruitment budgets are marginally more likely to have decreased, more departments are reporting they are adequately resourced. 72% reported they recruited in the final six months of 2016 and, going forwards, recruitment intentions remain broadly consistent with last year.

Recruitment budgets still under pressure• 37% of departments report that their recruitment budget

has increased, down from 42% in 2015

• 16% report a decrease (up from 9% in 2015)

• Increases remain more likely in asset management and insurance than banking where decreases are rising

Marginal slowdown in recruitment activity • 72% of compliance departments have recruited or attempted to recruit in the last 6 months,

down from 77% in 2015 and 86% in 2014

• Asset management groups are most likely to have recruited

Recruitment becoming less of a challenge • 59% of departments report they are finding it difficult to

recruit (down from 79% in 2015)

• 42% of departments report good candidates are hard to find (75% in 2015)

80%

60%

40%

20%

0

80%

60%

40%

20%

0

2015 2016

42%

37%

79%

59%

2015 2016


11Section 5 | Key conclusions from employer survey

Salary expectations becoming more reasonable• 18% consider salary expectations to be

reasonable (14% in 2015)

• 82% of departments (86% in 2015) report candidate salary expectations to be either excessive or more than expected

Use of external resources has moderated• 13% of departments report they routinely use external resources (down from 18% in 2015)

• 52% will use external resources for specialist skills, the same as 2015

Business growth to be main recruitment driver in 2017 • 36% of compliance departments report business growth will be their key driver

• Closely followed by replacement recruitment at 35%

Demand set to continue in 2017 • Only 13% (12% in 2015) of departments report they are unlikely to recruit in 2017

Evidence that Brexit could impact the compliance recruitment market in 2017• 35% of risk departments report Brexit is influencing the work they undertake

• 27% of departments report they are likely to require additional resource as a result of Brexit in 2017

80%

60%

40%

20%

0 18%

2015 2016

14%

Compliance departments becoming more likely to recruit internally• 17% (13% in 2015) of compliance departments

used internal recruitment as their principal source of recruitment

• At 47%, external preferred suppliers remain the principal source

30%

20%

10%

0% 17%

13%

2015 2016

Recruitment of compliance professionals becoming easier


6Market commentary

Our survey reveals a more buoyant recruitment market than we anticipated six months ago. We wrote then, possibly more in hope than expectation, that the compliance recruitment market would learn to live with Brexit. It would appear to have done so. 72% of departments reported they recruited in the final six months of 2016. Whilst recruitment budgets are under pressure, more compliance departments are reporting they are sufficiently resourced and a much lower 59% say they are finding it difficult to recruit. Going forwards, recruitment intentions remain broadly consistent with 2016.

A rapidly evolving industryThe financial services industry in the UK is undergoing a period of rapid evolution. The regulatory environment that developed in response to the financial crisis: the capital constraints and a period of sustained low interest rates, together with advances in technology, has led to structural changes in the industry and the emergence of new providers in almost all sectors. There is also the emergence and rapid growth of challenger banks and new mortgage providers, some of which have expanded their retail presence, while others have a model of lending through a network of intermediaries.

The impact of this is becoming apparent in the compliance recruitment market. It is displacing some of the demand away from the traditional providers of financial services and into the alternative finance sector.

It is no longer every compliance professional’s dream to work in a prestigious bank. Alternative providers offer advantages these banks cannot. For example, access to the CEO, senior management and decision makers, the avoidance of constant reporting, a wider range of work and, perhaps most importantly, a feeling of ownership. These alternative providers represent the epitome of 21st century living. The sometimes stifling levels of management and corporate culture are replaced with casual dress and nimble decision making. For some compliance professionals, this environment is potentially highly attractive. For others, established banks will always retain their cachet.

Clearly these types of seismic changes are seen as an opportunity to some and a threat to others. As recruitment consultants, it is refreshing to be involved in a dynamic and rapidly evolving market and one where we are able to add real value.

12 Section 6 | Market commentary


The impact of this is becoming apparent in the compliance recruitment market. It is displacing some of the demand away from the traditional providers of financial services and into the alternative finance sector.

13Section 6 | Market commentary


Regulatory driversHere are some of the regulatory initiatives currently impacting the recruitment market.

Structural Reform (also referred to as Ring Fencing)

Banks with more than £25 billion of deposits are required to hive off their consumer-facing business from riskier investment banking activities by 2019. Ring fencing is contributing to the reshaping of banking as major banks carve out business entities to comply with regulatory pressure while attempting to ensure efficiencies on a macro scale.

Asset Management Market Study

The FCA published its Asset Management Market Study in November having spent a large part of 2016 considering the issues affecting the industry. It outlined the concerns that it would look to the industry to address and, in response, asset managers have been expanding their compliance capabilities. MiFID II

MiFID II implementation has been delayed until January 2018. Contractors are in high demand to ensure readiness and, whilst the implications are wide-ranging, the immediate impact has been a surge in transaction and trade reporting roles.

MAR

MAR came into force in July replacing the existing ‘Market Abuse Directive’. The steady rise in the number of investigations and surveillance roles is continuing and candidates with experience gained outside of traditional financial services are in demand.

6Market commentary

The Fourth Money Laundering Directive

The Fourth Money Laundering Directive needs to be implemented in 2017 and the industry is continuing to recruit heavily in AML, Sanctions & ABC.

The political determination that there must not be a re-run of the financial crisis has put the cost of regulation ahead of the need for the industry to be competitive. The emergence of alternative providers is part of the response. However, the regulatory high water mark may have been reached. Whilst some in the City consider Brexit and the transfer of a material part of the industry to the Eurozone a threat, a less published threat to those who make their living out of corporate governance is the potential for deregulation in the United States. That could potentially make New York a more attractive option for the type of high value jobs London excels at. Whilst no doubt all part of the Brexit calculation, the copper-bottomed nature of the industry’s regulation and the jobs that go with them could potentially be at stake.



The political determination that there must not be a re-run of the financial crisis has put the cost of regulation ahead of the need for the industry to be competitive. The emergence of alternative providers is part of the response.




6Market commentary

BrexitAlthough early in the process, our survey asked compliance departments if Brexit was already influencing the work they undertook, or was likely to impact on the resources their departments required. 27% of compliance departments reported they will need additional compliance resources in 2017, higher than any other area of corporate governance. Contingency planning is taking place, should there be a worst-case scenario and the UK has neither special access to the Single Market nor has bilateral agreements in place.

Passporting has helped underpin the growth of London as Europe’s financial centre and helped financial services become our biggest export market. It is impossible to predict either the outcome of Brexit negotiations or the real-world implications for the financial services industry. It could, for example, ultimately result in a leaner, less regulated but far more dynamic industry. However, unless Brexit resulted in a wholesale haemorrhaging of the industry and a collapse in confidence, change is likely to result in opportunities for compliance professionals.

Brexit may also bring into focus the reliance UK compliance departments place on European recruits. Notwithstanding their much-needed expertise, the language skills they bring to the UK are not commonly held by compliance professionals.

Soft and broader skillsetsCompliance professionals looking to secure offers of employment increasingly need to demonstrate that senior management will buy into them. Whilst regulatory fines imposed have fallen to their lowest level since the financial crisis, the fall also reflects a shift towards punishing individuals. 14 of the 23 fines in 2016 were handed to individuals. Regulatory bite is also not simply about fines, but the powers of the FCA to investigate and debar people.

Given this, as regulatory pressures increase on operational management, the ability to deliver potentially controversial messages in a constructive manner has become increasingly valuable. We suggest that compliance professionals looking to enter the recruitment market build their internal network and be able to demonstrate their ability to deliver such messages and their impact. In the current recruitment market, there is a growing demand for broader skill sets that can be transferred across a number of areas. Compliance candidates who have both soft skills and broad technical skills, plus a settled CV, is a combination that businesses will buy into.

Prospective employers are also becoming warier of recruits they believe will not stay. Some compliance professionals have been promiscuous in their use of the recruitment market, moving regularly simply to increase their salary. Our advice in 2017 is to be aware that prospective employers are becoming far less likely to accept potential recruits with multiple job moves.



Internal recruitment As our survey indicated, compliance departments are becoming increasingly likely to recruit internally. This is not surprising given the cost constraints that much of the industry and particularly the big banks are operating under.

Notwithstanding the desire to control their costs, in-house recruitment markets within the financial services industry are expanding and, in many instances, reducing the need to recruit externally through agencies.

The increase in direct recruitment and the use of Recruitment Process Outsourcers has also progressively impacted the recruitment market. Roles that previously would have been worked on and filled by external specialists are now being recruited directly by in-house recruitment departments.

Crossing overThere is increasing movement between the 2nd and 3rd lines of defence and between risk and compliance. The financial services industry is under regulatory pressure to demonstrate “cultural change”. Evidence is required to show all areas are being effectively monitored and those with experience across risk, audit and compliance (or a combination of two) are in the enviable position of being in high demand.

Framework building skills gained in audit or risk are also hugely valuable to compliance monitoring teams. This is resulting in those with sometimes limited regulatory experience being offered monitoring roles purely because of their transferable skills. Conversely, those with strong regulatory knowledge who are looking to expand their skill set are welcome in many internal audit departments. Lawyers are regularly

being employed to work on policy and regulatory development roles due to their ability to interpret legislation.

A further example is that the use of analytics tools, especially in relation to financial crime data, is growing. Monitoring tools are creating vast amounts of data requiring data analysis skills which is opening up opportunities for people with no regulatory knowledge and often no financial services experience. We expect this to grow significantly during 2017.

Regulatory compliance versus financial crimeOutside of smaller financial services groups, the accepted wisdom is now that these two areas are distinct enough to warrant their own departments.

Pure financial crime roles (covering AML, Sanctions, ABC, KYC etc.) tend to be generated by the larger banks. This is a growth area with clear evidence that the number of vacancies has been increasing from 2015. Separate reporting lines, and in many cases separate recruitment teams, are now responsible for financial crime and movement between the two areas is reducing.

Framework building skills gained in audit or risk are also hugely valuable to compliance monitoring teams. This is resulting in those with sometimes limited regulatory experience being offered monitoring roles purely because of their transferable skills.


6Market commentary


Sector observationsThe banking and credit recruitment markets have slowed due to the decrease in recruitment from the larger banks. Having been entirely candidate led, this sector is becoming increasingly vacancy focused. As banks rationalise and concentrate their efforts, costs are being cut; including associated regulatory costs. Given the huge weight of banking compliance vacancies that has characterised the compliance recruitment market in the past, any significant decrease in vacancies has a disproportionate effect on overall demand. As a consequence, Fintech and challenger banks importance to the sector grew significantly in the second half of 2016. A number of larger banks are looking to recruit regionally but, given the difficulties this involves, are having to be flexible.

As we have already observed, the FCA took a keen interest in the investment sector in 2016 and this looks set to continue in 2017. On the retail side, there are concerns around fees and the complexity of products sold to customers. Compliance departments with one sole compliance professional have become departments of two or three, and larger companies have further increased their compliance resources. Within the sector, hedge funds and private equity offer the most competitive salaries, often at the expense of work / life balance. However, it remains a highly competitive niche area to secure employment in. Wealth managers continue to be scrutinised over the suitability of their advice and compliance professionals with relevant experience are in high demand.

There was significant demand for compliance professionals in the insurance and pensions sector in 2016. There were examples of teams doubling in size with ABC and sanctions roles growing in importance in the second half of 2016. Employee benefits was the busy area of pensions in 2016, with notable movement at the senior end of the market. Salaries have finally started to catch up with other parts of the market, having lagged behind for many years. The rapid expansion of departments is leading to candidate shortages and frustrated potential employers.

Within the markets sector there has been significant recruitment activity in FX following the FCA’s consultation and we expect this to continue in 2017. After a subdued period, equity markets had a much stronger second half in 2016 and this will likely impact the need for compliance expertise. Compliance recruitment within commodities remains subdued, whilst proprietary high frequency trading, although a small rather challenging niche, has been comparatively busy.




The contract marketDemand for compliance contractors is currently being led by MiFID II. There are numerous roles for regulatory focused change professionals (mostly Business Analysts and Project Managers), to assist with a variety of work streams – from initial gap analysis to detailed transaction reporting and investor protection topics.

A number of financial services groups have also recruited senior compliance consultants to take the lead on MiFID II and advise on specific policy and procedure changes. Contractors with MiFID II experience have been in high demand as have those who have worked on other regulatory change projects such as FATCA and MiFID I.

Rates for contractors with relevant experience are highly competitive, although companies are regularly prepared to reject what they consider to be unrealistic contractor expectations.

Fintech, start-up and other smaller groups are active, recruiting experienced contractors who can work independently and assist with a broad range of requirements. These are often interesting positions in dynamic, entrepreneurial groups. The rates they offer can be lower, although this is often not the key determining factor when contractors consider these positions.

We expect MiFID II demand to continue throughout 2017, particularly from small to mid-size buy-side groups. For some, the transaction reporting requirements will require new trading systems to be implemented, followed by the various policies, procedures and reporting processes to be designed and rolled out. For others, the new rules around research payments, client categorisation and what are acceptable inducements (conflicts of interest) will require external assistance.

SMR certification is also likely to result in demand for contractors in 2017, as this is rolled out across asset management.

20 Section 7 | Salary guide

7Salary guide

We reported in our main Salary Guide and Compensation Survey six months ago that the average salary increase achieved by compliance professionals changing job was 19%, a decrease from 21% in 2015. For those staying with their employer, the increase was 7.5%, down from 8% in 2015.

Whilst Compliance candidates have become more realistic in their salary expectations post Brexit, salary pressures remain. However, it is currently unusual for an offer to be turned down on the basis of salary alone. Our survey shows that 24% of compliance departments found salary expectations to be excessive (up from 21% in 2015), 59% more than expected, and 18% reasonable (up from 14% in 2015).

Salary pressure is currently more sector specific. In 2016, salaries plateaued across banking as recruitment slowed. Salary pressure is currently more likely to be experienced in the insurance and Fintech sectors, where the gap between banking is narrowing. Buy-side salaries are also rising. There is a particular recognition that it is worth attracting and properly rewarding senior hires, as it impacts investor confidence. After aggressive salary growth across financial crime, companies are now generally refusing to offer significant salary increases. However, for those wanting long term incentives and the highest variable compensation, private equity will be the place to be in 2017.

Going forward, after a period when the UK economy flirted with deflation, inflation is likely to have a greater influence on the recruitment market. We were surprised in our remuneration survey last year at the 21% of compliance professionals who reported to have received no salary increase. However, given that inflation is likely to exceed 2% in 2017, many of these departments will need to offer their staff nominal salary increases that are at least in line with inflation. The alternative is that

a significant number of compliance professionals will experience a fall in their real earnings. Whilst many of these may have already concluded that given their poor marketability there is little they can do in terms of changing employer, a material rise in inflation is likely to have an unsettling effect on the wider compliance recruitment market. Clearly among more marketable compliance professionals, there is an expectation that their salary will increase, not only in nominal, but also in real terms. If it does not, entering the recruitment market is the obvious solution.

Salary guidanceBarclay Simpson analyses the salary data that accumulates from the placements we make in the UK. This provides a guide to salaries for compliance professionals.

The salary ranges quoted are for good rather than exceptional individuals and take no account of other benefits in addition to salary that usually accrue to compliance professionals such as bonuses, profit sharing arrangements and pension benefits.

Barclay Simpson will release a Compensation and Market Trends Report in July that will include detailed information on salaries.


21Section 7 | Salary guide

Wholesale Banking & Capital Markets

Compliance or Financial Crime Assistant

Compliance or Financial Crime AVP/Manager

Compliance or Financial Crime VP/Senior Manager

Compliance or Financial Crime Director

Head of Compliance or MLRO

Global Head of Compliance/Financial Crime

6020 40 80 100 120 140 160 180 200 220 240Salary £000 260 280 300

Asset Management






EMEA Head of Compliance


6020 40 80 100 120 140 160 180 200 220 240Salary £000 260 280 300


Salary guide

22 Section 7 | Salary guide


Wealth Managers or Private Banks







6020 40 80 100 120 140 160 180 200 220 240Salary £000 260 280 300

General Insurance







6020 40 80 100 120 140 160 180 200 220 240Salary £000 260 280 300

23Section 7 | Salary guide


Retail Banking, Life & Pensions and Mortgages - London






6020 40 80 100 120 140 160 180 200 220 240Salary £000 260 280 300

Retail Banking, Life & Pensions and Mortgages - Regional






6020 40 80 100 120 140 160 180 200 220 240Salary £000 260 280 300

Hedge Fund/Private Equity

Compliance Assistant

Compliance Manager Head of Compliance

6020 40 80 100 120 140 160 180 200 220 240Salary £000 260 280 300

8Employer survey results

24 Section 8 | Employer survey results


DemandResources improving but still under pressure

Q Do you feel your department is sufficiently resourced for the demands that are made on it?

2014 2015 2016

100%

80%

60%

40%

20%

0

55%No

68%No

56%No

45%

Ye

s

32%

Ye

s

44%

Ye

sMarginal slowdown in recruitment activity

Q Have you recruited, or attempted to recruit, externally in the last 6 months?

2014 2015 2016

100%

80%

60%

40%

20%

0

14%No

23%No

28%No

86%

Yes

77%

Yes

72%

Yes

The key conclusions from our employer survey results are contained in Section 5 of this report. Here are the survey results from which the conclusions were drawn.

Respondents to our survey were individuals with responsibility for recruitment who were asked questions designed to elicit their perspective on the recruitment market.

25Section 8 | Employer survey results


Increased pressure on recruitment budgets

Q Has your recruitment budget increased in the last year?

2014

2015

2016

16%

9%

4%

40%49%

47%

56%42%

37%

IncreasedDecreased

No, same

Only 13% unlikely to recruit in 2017

Q What are your recruitment plans for 2017?

LikelyUnlikely

Replacement

2014

2015

2016

13%

12%

32%40%

55%

55%48%

32%13%




Candidate availabilityCandidates much less difficult to find

Q How would you rate the availability of candidates?

3%

PlentifulDifficult tofind

Generally available

2014

2015

2016

4%

26% 21% 58%

71%

42%

75%

Difficulty easing significantly

Q Overall, have you found it difficult to recruit?

2014 2015 2016

100%

80%

60%

40%

20%

0

19%No

21%No

41%No

81%

Yes

79%

Yes

59%

Yes



Interpersonal skills now more important

Q What has been the greatest challenge?

Interpersonal skills

Technical skills

2014 2015 2016

35%

65%

38%

62%

59%

41%

Recruitment resourcesInternal recruitment increasing

Q What is your principal source of candidates?

Preferred suppliers

InternalRange of agencies

Advertising referrals

In-house recruitment

18%

22%

17%

9%

9%47%

53%53%

27%

13%

8% 3%

6% 9%

2014

2015

2016

2014

2015

2016

57%

Specialist skillsVery limited

Routinely

52%

52%

17%

18%

13%

26%

35%

30%

Q To what extent do you rely on external resources to achieve your departmental objectives?

6%




2014 2015 2016

Slight increase in diversity and inclusion targets

Q Do you have any diversity and inclusion targets that may influence your recruitment decisions?

2014 2015 2016

100%

80%

60%

40%

20%

0

10%Yes

11%Yes

14%Yes

90%

No

89%

No

86%

No

ExcessiveReasonable

More than expected

24%

2014

2015

2016

21%

22%

50%65%

59%

26%

18%

14%

Salary expectations becoming more reasonable

Q What has been your perception of candidate salary expectations?

Replacement recruitment

Business growth/development

New regulation

Business as usual

New products

Other findingsBusiness growth/development to be main driver

Q Which will be the most important recruitment driver in 2017?

34%

39%

18%

2%7%

39%

21%

28%

9%3%

35%

36%

20%

7%2%



Q How is Brexit likely to impact the resources your department requires?

Need additional resources

No change

73%

0% Need less resources

2016

Q Is Brexit already influencing the work undertaken by your department?

2016

100%

80%

60%

40%

20%

0

35%Yes

65%

No

27%

Brexit already having an impact in compliance

9About Barclay Simpson

Barclay Simpson is an international corporate governance recruitment consultancy specialising in internal audit, risk, compliance, security & resilience, business continuity, legal and treasury appointments.

Established in 1989, Barclay Simpson works with clients in all sectors throughout the UK, Europe, Middle East, North America and Asia-Pacific from our offices in London, New York, Dubai, Hong Kong and Singapore.

We add value by using our unique focus on corporate governance, our highly-experienced specialist consultants and access to both the local and international pools of corporate governance talent.

Our strength lies in our ability to understand client and candidate needs and in utilising this insight to ensure our candidates are introduced to positions they want and our clients to the candidates they wish to recruit.

For more in-depth coverage, comprehensive reports and compensation guides exist for the Internal Audit, Risk, Security & Resilience, Compliance and Legal recruitment markets. These can be accessed from the links below.

We also produce other specialist reports, each of which can be accessed for free on our website: www.barclaysimpson.com

www.barclaysimpson.com/internal-audit-market-report-2017

www.barclaysimpson.com/risk-management-market-report-2017

www.barclaysimpson.com/compliance-market-report-2017

www.barclaysimpson.com/security-and-resilience-market-report-2017

www.barclaysimpson.com/legal-market-report-2017

Barclay SimpsonBridewell Gate, 9 Bridewell PlaceLondon EC4V 6AWTel: 44 (0)20 7936 2601Email: [email protected]

30 Section 9 | About Barclay Simpson


31Section 9 | About Barclay Simpson

If you would like to discuss any aspect of the reports please contact the following divisional heads:

Corporate Governance Adrian Simpson [email protected]

Internal & IT Audit Tim Sandwell [email protected]

Risk Dean Spencer [email protected]

Compliance Tom Boulderstone [email protected]

Security Mark Ampleford [email protected]

Legal Jane Fry [email protected]

Interim Andrew Whyte [email protected]

To discuss our international services, please contact:

Europe/Middle East Tim Sandwell [email protected]

Asia Pacific Russell Bunker [email protected]

North America Daniel Close [email protected]


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