Compliance Risk in Investment Banking by rho10852


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									Investment Banking &
   Asset Management
   Salary Survey 2009


01   PSD: An Overview
02   Compliance Overview
03   Industry Comment: Investment Banking
04   Industry Comment: Asset/Investment
05   Market Activity: Investment Banking
06   Market Activity: Asset/Investment
07   Salaries: Investment Banks
     Salaries: Asset/Investment Banks
08   Salaries: Wealth Management
     Salaries: Hedge Funds
09   Salaries: Stockbrokers
10   Contact Details
PSD: An Overview
PSD is an international recruitment services organisation. The Group is listed on the London Stock
Exchange and operates internationally.

Recruiting at all management levels across support functions up to Board level, we deliver innovative
recruitment solutions for the world’s leading organisations.

Our strength lies in our dedicated approach to and expert knowledge of our specialist sectors and
functional disciplines. Each specialist division of PSD is well established as a market leader within its
specific field of recruitment.

Functional Disciplines               Global Vision                        FTSE4GOOD
Compliance                           Our international experience         PSD is a member of
Risk                                 allows us to handle assignments      FTSE4Good and is listed as an
Audit                                across the globe with particular     All-Shared Index Constituent.
Legal                                focus upon Europe and Asia           Corporate Social Responsibility
Pensions & Investment                Pacific.                             (CSR) Standards are becoming
Finance                                                                   increasingly more prominent in a
Purchasing and Supply Chain          Our People                           client's selection of a supplier.
Customer Contact                     Standing out in the recruitment
Marketing & Sales                                                         The CSR standard incorporates
                                     market is never easy, most           company policies, management
Property/Facilities Management       consultancies tend to offer
Human Resources                                                           and reporting on environmental,
                                     similar services. However, at        social issues and stakeholder
IT & Technology                      PSD we have a key point of
Operations                                                                relations criteria. This includes
                                     difference - the quality of our      areas such as diversity, equal
Recruitment Services                 people.                              opportunities, health and safety,
                                     It is the skills and knowledge of    training and development and
Our reputation has been built                                             employee relations.
upon our ability to deliver highly   our consultants and support
effective recruitment solutions to   staff that provide clients and
our client companies. Each           candidates with exceptional
recruitment consultant is fully      service. All staff successfully
trained in file search, advertised   work within a values based
selection, executive search and      organisation.
contracting, ensuring that we        Commitment to Quality
are in the strongest position to
recommend solutions which are        PSD is committed to the training
appropriate to the individual        and development of our people
needs of our clients.                and to the continuing
                                     improvement in the quality of our
The skills and experience of our     services. We continue to adhere
consultants and the resources        to the Investors in People
and capability of the Group          standard and ISO 9001:2000
enable us to handle a wide
variety of recruitment
requirements, from single key
appointments to large scale
recruitment projects, in both
international corporations and
small private businesses.
Compliance Overview
Preparation of the Survey            PSD in Compliance                      Our Strengths
This survey is designed to give      Having been established since          - Professional experienced
companies guidance when              1991, PSD have been specialising         Consultants.
considering remuneration for their   in compliance recruitment from         - Strong market presence.
compliance staff, and also to give   the very beginning. We have seen
                                                                            - Specialisation within the
employees an insight into their      the changes in industry brought
                                                                              investment banking &
market value, based on their         about by an increase in regulation
experience.                          from the introduction of the             fund/asset management
                                     Financial Services Market Act in         compliance market.
The information has been collated    2000, to the more recent               - In depth understanding of
from a questionnaire sent out        introduction of TCF and MiFID,           clients’ needs.
earlier this year to over 2000       and the on going move towards          - Agreed timescales for delivery.
compliance professionals who are     principles-based regulation.
registered with PSD or with the                                             - Over 50% of candidates
specialist compliance websites.      The Team                                 referred.
                                                                            - Up to 70% of positions handled
This survey focuses on Investment    We have a team of 8 consultants          exclusively.
Banking and Asset/Fund               who specialise solely in
                                                                            - Repeat business on over 70%
Management Compliance and will       compliance with a national
                                                                              of our accounts.
include: Hedge Funds, Stock          coverage of retail and investment
brokers, Private Wealth and          banking, fund/asset management,        - Contingency or retained basis.
Private Equity organisations.        insurance and other regulated          - Handle permanent contract or
                                     industries.                              interim assignments.
A survey that focuses on Retail
Financial Services Compliance is     Who We Recruit For
available, to obtain a copy please
email        We have a strong track record
                                     recruiting at all levels from junior
We would like to thank everyone      Compliance Analysts up to
who has contributed towards this
                                     Directors and Global Heads of
survey by providing valuable
                                     Compliance. We are a preferred
                                     supplier to the majority of the
If you have a specific salary        major players and SME’s in the
question please do contact us.       Financial Services sector, and
We would be delighted to provide     have built our reputation on
you with more detailed information   excellent customer service tailored
relating to your sector and level.   to clients’ and candidates’ needs.
Industry Comment
Investment Banking                     At PSD, we are fortunate
                                       enough to have a healthy client
For the purpose of the survey,         base, and an even better
Investment Banking refers to sell-     candidate database. With all of
side organisations in London, who      the turmoil going on in the
are involved in Corporate Finance,     Financial Services markets of
M&A, Sales and Trading and             late, if there's a place to be
Private Equity.                        within the Financial Services
                                       world then Compliance has to
One of the major effects of the        be one of the more sustainable
credit-crunch on the recruitment       markets. We are hopeful that
industry has been the switch from      2009 will be a fruitful year for us,
a healthy number of job                as new rules and regulations are
opportunities and very few             undoubtedly about to be
available candidates, to a market      released by the FSA which in
where there are now a                  turn will have a positive effect on
considerably larger amount of          the regulated sectors.
candidates available for every job
vacancy. This in turn has created      Bonus & Benefits
a buyers market where employers
are able to pick and choose at         2008 bonuses for the majority of
                                       sell-side organisations have
their own pace, and be very
                                       been dramatically reduced,
specific about the skill sets and
                                       although surprisingly a number
attributes of the person they hire.    of front office workers have still
With the majority of unemployed        received a fair bonus for their
candidates in the market being         efforts during 2008.
open to considering reductions in      Middle and back-office functions
their earnings, means that there       seem to have been affected the
are some highly qualified              most, with a large proportion
individuals looking for work. As a     receiving little or no bonus for
result clients can take advantage      2008.
of this and hire at a reduced rate.
In most instances clients have         There are some Investment
been wary of this, appreciating the    Banks which have honoured
fact that when the market              2008 bonuses, but as a whole
                                       the bonus being paid in 2009 is
improves those who have
                                       a shadow of what was
accepted lower salaries will either
insist on an increase or leave for
more salary aligned positions.         Historically people have been
                                       motivated via basic salary and
For positions which call for a more    potential bonus, either
targeted approach i.e.                 discretionary or guaranteed, but
Headhunting has become a               as the market has tightened and
tougher task than ever, as many        the level of salaries stabilised
people have witnessed friends          this has led to benefits
and colleagues being made              becoming increasingly more
redundant and feel thankful to still   important to anyone
be in employment.                      contemplating an offer.
Industry Comment
Asset/Investment                       continue to feel the force of the      Although benefits have remained
Management                             regulators which has in turn           at a similar level throughout 2008,
                                       required Compliance to remain a        bonuses during this time for many
For the purpose of this survey         critical area. There is therefore an   buy-side organisations have been
Asset/Investment Management            additional need to have the            impacted substantially as a result
refers to buy side organisations in    highest calibre Compliance             of the economic downturn. In the
London and the North of England        professionals on board.                same way employers have frozen
involved in institutional or private                                          salaries or even cut pay this year
client investment via assets or        Whilst Hedge Funds have seen a         to cope with the recession.
funds. This includes Hedge             decrease in numbers over the last
Funds, Stockbrokers and Wealth         12 months, it has been the             The problem is that employees
Managers.                              Stockbrokers and Wealth                believe the grass is greener
                                       Management businesses which            elsewhere and have therefore
Businesses in the Asset/               are maintaining the most amount        started to consider other
Investment Management sectors          of stability in the market.            opportunities within the buy-side
were looking set for another                                                  market - the truth is that other
exceptional year of growth during      Specifically within Wealth             companies are experiencing very
2008, however by the end of the        Management, Private Investors          much the same financial problems
year it was evident that these         continue to become more                and there are in fact few
sectors were more likely to shrink     sophisticated through offering         organisations who are in the
and be consolidated. Similar to        innovative and more                    comfortable position of handing
the Investment Banking market          comprehensive solutions in order       out competitive bonuses.
the credit crunch has had a            to compete in the market. As a
                                       result we have seen an increase in     In respect of Compliance
profound impact on most
                                       bringing the best Compliance           professionals, given the lack of
businesses across this field.
                                       specialists on board to oversee        increase on basic salaries and the
The economic situation will always     the new variety of products being      small amounts in the bonus pot,
dictate the need for recruitment       used.                                  benefits are having more of a
activity within any organisation,                                             profound impact on those
however, whilst both these sectors     Again similar to the Investment        considering suitable opportunities.
have undoubtedly suffered              Banking world, Treating                Without the guaranteed or
considerably over the last 12          Customers Fairly (TCF) and Anti-       discretionary bonus over the last
                                       Money Laundering (AML) have            12 months, pension contributions
months, there still remains a
                                       had the most amount of focus           and other benefits such as
continuous flow of recruitment.
                                       during 2008 and will no doubt          healthcare, holiday allowance are
From a compliance perspective          continue to play a big part with       becoming more critical in the
the Investment Management and          Wealth Managers throughout             decision making process.
Real Estate sectors have been          2009.
increasingly shaped by a wave of
new regulations in areas ranging       Bonus & Benefits
from governance to financial
reporting and continues to do so       Bonus and benefits are often seen
moving into 2009.                      as a crucial element for
                                       candidates considering positions
Although redundancies have             in the Banking sector, in particular
gradually found their way into the     at the Senior end and 2008 was
Compliance field, businesses           certainly no different.
Market Activity
Investment Banking                    With the volume of deals being         The MLRO, otherwise known as
                                      reduced there have been less           CF11 has also been quiet on the
Compliance Officer                    recruitment activity for compliance    recruitment activity front.
(AML/Monitoring)                      advisory positions than previously
                                      experienced in a healthy market.       Financial Crime still remains a key
Monitoring is the most active area                                           part of any financial services
of Compliance this year for PSD,      However, PSD has experienced
                                      an increase in demand for              organisation and being such a
with KYC and AML still being a                                               critical position requires specialist
key part of compliance and            Equities and Fixed Income
                                                                             knowledge and expertise. Again
remains a manageable cost in          specialists.
                                                                             in some cases we have seen the
terms of salary.                                                             Money Laundering Reporting
                                      Compliance Manager/Head of             Officer merge into the Head of
Although the majority of PSD's        Compliance/MLRO (CF10/11)
sell-side clients have not actively                                          Compliance position.
been developing this side of their    The level of breadth and
business, there have been a           responsibility for this position
number of positions which have        varies between one Investment
become available for both             Bank to another, and typically
permanent and contracting             depends on a number of factors
monitoring staff in 2009. This area   such as size and structure of the
in particular tends to have a large   organisation in question.
amount of contractors to assist
on specific projects or complete      There have been fewer Heads of
short term assignments.               Compliance and MLRO positions
                                      on the sell-side for the beginning
                                      of 2009. A large number of
Compliance Advisor
                                      organisations have opted to move
This is a senior post within any      the Head of Compliance post,
sell-side organisation and one        otherwise referred to as the
which is typically taken on after     CF10, to the group or
spending several years within the     organisations’ Financial Director in
compliance field.                     order to reduce costs.

This position requires the            Candidates have also been
individual to have a good             reluctant to move due to job
understanding of the FSA rules        security, although we expect this
and regulations, in which they are    to improve towards the end of
tasked with advising the desk on      2009 as more confidence is
whether a trade can be legally        restored to the financial services
executed.                             industry.
Market Activity
Asset/Investment                      Whilst this role will entail elements   The position will normally
Management                            of core compliance, the majority        encompass oversight of the
                                      will encompass advising on              compliance team and although
                                      particular products which are           they will be responsible for the
Compliance Officer                    relevant to that specific business.     day-to-day running of the core
(AML/Monitoring)                      There has been less recruitment         compliance function, much of this
This area typically consists of       at this level during 2008 due to        will be delegated to the junior
graduate type professionals or        organisations looking to keep the       members of the team. The main
those with between 1-3 years          highest calibre of Product              area of their focus will be on
experience within Compliance.         Specialists on board.                   assessing the risk control
There has been a reduced                                                      framework from a higher strategic
                                      Although perhaps fewer of them          level.
amount of recruitment at this level   now, Product Specialists continue
due to organisations requiring        to be the most sought after type        There are historically always fewer
candidates with previous              of compliance professional in the       opportunities at this level in the
experience. This is mainly due to     market and this can often lead to       market and 2008 was no
additional time constraints in        demands for higher salaries.            different. It can often be the case
providing the adequate training       Bonuses are consistent with other       that when a Head of Compliance
for junior staff.                     areas and have suffered in light of     leaves, the organisation looks
However, within smaller               the economic climate.                   internally to promote and then
organisations there does continue                                             recruit at the lower level.
to be the need for junior staff to    Compliance Manager/                     As for remuneration, with the
undertake the core compliance         Head of Compliance/MLRO                 majority of organisations
tasks ie PA Dealing, Financial        (CF10/11)                               withdrawing most bonuses and
Promotions, Approved Persons,                                                 basic salaries remaining static, it
Watch/Restricted Lists. Salaries      The content and responsibility of
                                                                              seems the only way to achieve
have remained the same and            this role will vary depending on
                                                                              any potential increase is to
bonuses continue to suffer given      the size and internal structure of
                                                                              consider a career move.
the current market conditions.        the business. The CF10/CF11
                                      responsibilities will either be with
                                      the Head of Compliance/
Compliance Advisor                    Compliance Manager or
An experienced compliance             alternatively with the CEO/Finance
professional typically with five      Director.
years plus specialist product
knowledge. Candidates will have
an in-depth understanding of FSA
rules associated with the
development, marketing,
distribution and selling of these
Salaries: Investment Banks
                                                                London/ South East
Compliance Assistant/
Analyst                   30-35

Compliance Monitoring               35-55

Control Room                        40-50

Compliance Product
Specialist/Advisory                                 50-80

Head of Monitoring/
Advisory/Control Room                                       70-90

MLRO                                                        70-110

Head of Compliance                                                           100-130

Global Head of
Compliance                                                                             120-150

Salaries: Asset/Investment
                                                                London/ South East
Compliance Assistant/      30-35
                                                                North England
Analyst                 25-30

Compliance Monitoring      30-40
Compliance Advisory                35-50

Compliance Manager                          45-60

Head of Compliance/                                        70-100
MLRO                                                   65-85
Salaries: Wealth Management
                                                            London/ South East
                                                            North England
Compliance Assistant   25-30

Compliance                       30-55
Monitoring/Advisory      28-36

Compliance Manager                  40-55

MLRO                                                      65-85

Head of Compliance                                           75-110

Salaries: Hedge Funds
                                                            London/ South East

Compliance Assistant      30-35

Monitoring/Advisory                      40-60

Compliance Manager                                50-80

MLRO                                                         70-90

Head of Compliance                                                    90-120
Salaries: Stockbrokers
                                                    London/ South East
                                                    North England
Compliance Assistant   20-30

Compliance                                40-65
Monitoring/Advisory        25-40

Compliance Manager                     40-55

MLRO                                               60-75

Head of Compliance                                           75-100
Contact Details
We hope that this information has been of benefit to you. Should you require more detailed
information or if there is a particular recruitment need with which we can help, please do not
hesitate to contact us.

Your views are important to us and we would be pleased to receive your feedback on this survey.

Stuart Vines                                  Edward Manson
Senior Consultant                             Consultant
28 Essex Street                               28 Essex Street
London                                        London
WC2R 3AT                                      WC2R 3AT

Direct Line: 020 7970 9639                    Direct Line: 020 7970 9759
Email:              Email:

Richard Abelson
2nd Floor, Abbey House
74 Mosley Street
M2 3LW
Direct Line: 0161 234 0392

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