Mon, July 30, 2018
“The compliance and regulatory space has been one of the most buoyant recruitment markets across Asset Management and is set to continue as the FCA tightens its regulatory grip on the industry; Regulation only seems to be going in one direction. Much of the UK’s Asset Management market has spent the past six months attempting to negotiate the uncharted waters of Brexit. Key questions that have arisen surround fund domiciles and MiFID II requirements. Firms have also seen the implementation of GDPR as well as the new Senior Managers and Certification Regime (SMCR)” – Khalid Basheer, Risk & Compliance Principal Consultant.
Since our last update
The 2 key areas of demand have been:
Contract versus permanent demand
80% of the roles we have assisted with have been permanent and 20% have been contract. We have seen a 16% increase in permanent hiring since 2017 as some firms seek to avoid expensive short term hiring practices despite the uncertainty surrounding Brexit.
The increase in regulatory obligations has also seen hundreds of UK Asset Management firms embrace emerging regulatory technologies now being called RegTech. An overwhelming majority of responses to an EY survey identified increased automation, efficiency and auditability as the impetus behind investment in RegTech. Despite the proliferation of RegTech start-ups entering the market over the past 12 months, it is BlackRock’s risk analysis and portfolio management software, Aladdin leading the way with close to 90 fund managers running more than $18tn in assets on the platform.
Major UK companies are beginning to pull each other up on gender and race diversity – the co-founder of a London communications group was invited to pitch for business with a Wall Street firm last November, however the offer came with an unusual demand. 15% of the scorecard for the pitch was based on the firm being able to show its commitment to diversity and inclusion. This needn’t be a problem, rather be seen as an opportunity.
Compliance & Risk Placement Statistics:
Our Event: ‘Disruptive Technology & Innovation within Asset Management’ with PwC
In this year’s PwC’s CEO survey, 69% of UK CEOs said that they believe emerging technologies – such as artificial intelligence, blockchain and robotics will disrupt their current business models in the next five years. We asked PwC to collaborate on an event with us for the second year running. The session was led by David Moloney, Director - Innovation & Transformation and Elizabeth Stone, Partner - UK asset and wealth management leader.
PwC concluded by stating that “predicting the future is difficult, however it can help to imagine different possibilities”. Their report is a useful model for tackling uncertainty and the unknown. It has six key messages for leaders:
1. Act now
2. Make no-regret moves
3. Make a bigger leap
4. Own the automation debate
5. Focus on people, not jobs
6. Build a clear narrative
Firms leading the way with the technology agenda appear to be Blackrock, Schroders and M&G Investments, all of whom have technology centres of excellence. Please contact us if you wish to receive the event paper.
Click Here to keep track of the Risk & Compliance opportunities we recruit for.