Taylor Root Hong Kong - Compliance Salary Guide 2013

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Taylor Root are delighted to release our latest Compliance Salary Guide to all compliance professionals within banking & financial sectors in Hong Kong!

Taylor Root are delighted to release our latest Compliance Salary Guide to all compliance professionals within banking & financial sectors in Hong Kong!

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  • Whilst we are confident that for the most part these salaries will properly reflect compliance professionals' compensation, we also recognise that it is impossible to put together a document that will cover entirely accurately each and every situation especially in today's financial climate within the financial services sector where we are given the huge variances. As such, should you require more specific salary advice for you or your team, then please do call and I would be more than happy to provide you with tailored advice based on your particular situation.
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  • 1. Compliance Market Update & Salary Guide 2013 Hong Kong taylorroot.com L: taylor-root T: @TaylorRootLegal
  • 2. Compliance: Market Update and Salary Guide 2013: Hong KongIntroductionAs a part of Taylor Root’s continued commitment to the compliance recruitment market, we are delighted to present our HongKong Compliance Market Update and Salary Guide for 2013.Based on market intelligence gathered in the Hong Kong market, our survey aims to provide professional guidance to both clientsand candidates and we thank them for their involvement. We have obtained crucial information from both the employers’ andemployees’ perspectives to enable us to present accurate information regarding market and recruitment trends, compensationlevels and the overall outlook of the market in the last twelve months.2012 was undoubtedly challenging for most compliance teams within the banking and financial services sector due to thebalancing of new regulations and business expansion expectations in an increasingly regulated environment. In addition, thecontinuous effect of the European and US financial crisis has resulted in compliance professionals being expected to advise,analyze and adapt to regulatory changes with steady, but not major, expansions to their teams.In this report, we will discuss each sector in more detail including hiring patterns, a review of 2012 and an outlook on 2013.We will also provide details regarding remuneration and benefits for the compliance market in Hong Kong. Mark Coates Partnertaylorroot.com
  • 3. Compliance: Market Update and Salary Guide 2013: Hong KongMarket Overview 2012Recruitment activities in 2012 were largely affected by the financial crisis in Europe and the US coupled with the launch-outof new regulations affecting financial institutions. Overall, the market has been steady although not at the levels seen in 2011and hires have largely been replacement rather than new headcount except in specific expertise areas.Candidate flow was stable throughout 2012 although there was a reluctance to leave secure jobs due to the abundantuncertainties in the market. Candidates had a general concern regarding their job security and accordingly felt it would bebetter to maintain the status quo and avoid the “last in first out” phenomenon. Organisations with strong compliance culturescontinued to be attractive to potential candidates and were a major pull factor in candidates moving in 2012.Investment banks, structured productsInvestment banks were generally seeking experienced candidates throughout 2012 especially in the area of cash equities,structured products or advisory compliance. There is a clear shortage of candidates in these areas and many of our clientsfaced difficulties recruiting which was largely due to the movement of suitable candidates in the 2011 period. Overall,product knowledge (such as cash equities, structured products, fixed income, commodities, and structured derivatives) isimperative in investment banking compliance and experienced candidates remained in demand throughout the year.Retail & consumer bankingThe new Anti-Money Laundering Ordinance announced by the Securities and Futures Commission which came into effectin April 2012 created an abundance of excellent opportunities for candidates in early 2012 as institutions reacted andrestructured to prepare for the new implementations. Significant hires were made within the junior to mid-level range withanti-money laundering and counter-terrorist financing professionals in high demand in the first two quarters and up until themiddle of the third quarter.The recruitment market within the retail and consumer banking sector remained steady throughout the remainder of the yearas our clients secured additional personnel and successfully implemented regulatory changes to their operations.As the year closed, experienced AML professionals remained in demand as financial institutions enhanced their policies,procedures and controls in compliance with the requirements. Jenny Yeung Consultant - Compliance taylorroot.com
  • 4. Compliance: Market Update and Salary Guide 2013: Hong KongMarket Overview 2012Funds/Asset Management & Wealth ManagementThe Asset Management and Wealth Management sector was one of the few areas where we saw stable growth at all levelsin 2012. Recruitment due to business expansion and replacement activities were the dominate reasons for hiring especiallywithin the mid-sized asset management and investment firms who are still in a stable growth stage in Asia.Employers faced difficulties recruiting from within the Private Banking/Wealth Management sector especially at the seniorend of the market due to a shortage of sector candidates as a whole. Candidates from securities or investment bankingbackgrounds were often required to fill this void (sometimes to the reluctance of hiring managers from the private bankingsector).PRC-entitiesOver the past two years, PRC investment and commercial banks based in Hong Kong have expanded their compliancedepartments to comply with regulatory changes and their expanding businesses. We saw significant hires in the Anti-MoneyLaundering and advisory teams especially at the start of 2012 with demand slowing throughout the year. Compensationstructure in the form of bonuses was the main attraction for candidates seeking positions within PRC entities in 2012.Compliance Service ProvidersGiven the uncertainty of the economy and budget constraints faced by hiring managers, we have seen a significant increasein domestic and smaller financial institutions seeking third-party consulting firms to support their compliance functions.Much of this work is done on a project basis and such projects include licensing, (ongoing) compliance support, and specificAML projects. Accordingly, service providers have been continuing to seek junior to mid-level compliance candidates for theirincreased workload. We have also seen demand from asset managers and private equity firms for candidates from complianceproviders due to their excellent project based experienced.In conclusion, there has been a clear lack of job opportunities for senior professionals due to headcount freezes and budgetconstraints especially within the investment banking sector. Recruitment activity has been the highest within the wealth andfunds management sector along with PRC-entities while Anti-Money Laundering has been the dominant skill set in demand.In regards to employers’ requirements, direct experience remains the most relevant although employers are focusing on thepotential growth of candidates along with their leadership, communication and interpersonal skills.taylorroot.com
  • 5. Compliance: Market Update and Salary Guide 2013: Hong KongOutlook for 20132013 has started off positivly and a level of confidence appears to be returning to the markets. Recruitment levels will dependon how the global financial markets perform in the next few months. If they continue in their current form, the outlook willremain positive and we are expecting a buoyant year in compliance recruitment.Traditionally candidates become more active in the weeks following Chinese New Year and after their bonuses have beenawarded, so potentially it could be a buoyant post-bonus hiring season compared to previous years.For hiring managers, business costs remain a concern and their increased awareness of cost-efficiency structures willcontinue. In Hong Kong, this means some back-office functions may relocate to less expensive operating countries. Despitethis concern there are many sectors that still see Asia as the hub for their back office function generally.From a candidate perspective, strong compliance professionals with specific areas of expertise will remain in demandthroughout 2013. For example, clients will continue to seek candidates with strong and relevant experience rather thancandidates with generalist compliance backgrounds due to specific compliance functions within each team.Investment banks will remain stable as most clients still hold a very cautious attitude in approving headcounts although apositive shift in market conditions could finally see a relaxing of headcount restrictions. There is currently little uniformityacross the compliance field, with some areas and institutions experiencing substantial hiring, while others are moreconservative. We expect AML functions to continue to expand throughout 2013 and this area to be the most buoyant of thecompliance functions. PRC investment banks will continue to grow with a more conservative approach, but they are expectedto seek candidates who have a background in structured products and all-rounded investment banking to assist in theirexpansion plans.Asset and investment management firms are considered the stable sectors within financial services markets and it remains anarea where we could see significant movement at all levels. Mid-sized asset management firms are particularly busy amongstthe key players who still have room to grow their compliance functions. Compliance candidates with experience in dealingwith Yuan funds and ETF funds will be highly sort from such institutions.Senior compliance candidates within wealth management providers will remain in high demand. However, several replacementroles have been filled in the last several months so we are expecting to see a slowdown in this area at a junior to mid level.The consumer/retail banking market should remain steady in 2013, and we are expecting largely replacement roles throughoutthe year. There will be few exceptions where the banks could possibly have AML projects to implement.Demand for compliance professionals in hedge fund managers is increasing due to the growing volume and complexity ofcompliance and regulatory requirements. From the past, we would expect only the largest hedge fund managers to have anin-house team to manage their compliance requirements, but we have already seen some movement in this sector. Mosthedge fund managers notice having an in-house legal and compliance team would not only relieve some pressure off the COObut also save the fees paid to compliance service providers or law firms. Candidates with broad compliance backgrounds andhedge-fund regulatory experience will definitely be in demand in 2013. taylorroot.com
  • 6. Compliance: Market Update and Salary Guide 2013: Hong KongRemuneration & BenefitsMost financial services companies will be reviewing the salaries of their employees in the next 6 months. While mostbanking and financial compliance professionals agreed that their total remuneration remained fairly stagnant in 2012, theyare expecting only small increments to their base salaries. Funds and investment managers are competing to recruit the bestcandidates resulting in a slight increase in base salary offered in this sector. Other sectors remain fairly stagnant with anincremental increase from 3% to 8%, and an average of 5.5% increase.Annual bonus payments almost always make up an element of remuneration packages for in-house compliance professionals.We have continued to see a broad range of bonus payments between sub sectors and even between companies within thesame specialist market. For example, on average, bonuses were two or three months within the international banks whileHong Kong/PRC-entities banks could pay from one to even eight months to their employees. The bonus culture of the HongKong/PRC-entities banks has appealed to some candidates, and we saw compliance candidates move from internationalinstitutions to take up these offers in the year of 2012.Due to budget constraints, relocation has been an issue for international candidates seeking to move to Asia. Many clients areonly considering candidates on the basis that relocation assistance is not a prerequisite to making an applications and this haslargely been accepted by international junior and mid-levels candidates, although they will find it difficult to compete withlocal candidates who have the Chinese language skills and the local regulatory experience.The standard benefits package usually includes private medical insurance, life assurance and pension. Jenny Yeung Consultant Taylor Root Hong Kongtaylorroot.com
  • 7. Compliance: Market Update and Salary Guide 2013: Hong KongSalaries Investment Banking - Securities & Corporate Finance Title Years’ Experience Organisation Type Salary range (HK$) Assistant Officer / Officer / Analyst Tier 1 24,000 - 45,000 0 - 3 years Tier 2 16,000 - 34,000 Senior Officer / Associate / Assistant Manager Tier 1 35,000 - 60,000 2 - 4 years Tier 2 28,000 - 40,000 Manager / Senior Manager / AVP / AD Tier 1 50,000 - 90,000 4 - 6 years Tier 2 36,000 - 55,000 VP / Deputy Head / SVP Tier 1 80,000 - 130,000 6 - 8 years Tier 2 50,000 - 83,000 Head of Compliance / Regional Head Tier 1 110,000 - 160,000 8 - 10 years Tier 2 75,000 - 100,000*At senior levels, bonus can be more than 80% of base salary. Country Head of Compliance (Director or Senior Vice President)from about HK$100,000-170,000 per month base salary and bonus of 50-150%, plus benefits. Regional Head of Compliance(MD) HK$150,000-260,000 per month base salary and bonus of 50-150% plus benefits.Funds & Asset Management Title Years’ Experience Organisation Type Salary range (HK$) Assistant Officer / Officer / Analyst Tier 1 23,000 - 38,000 0 - 3 years Tier 2 15,000 - 25,000 Senior Officer / Associate / Assistant Manager Tier 1 28,000 - 50,000 2 - 4 years Tier 2 23,000 - 38,000 Manager / Senior Manager / AVP / AD Tier 1 45,000 - 75,000 4 - 6 years Tier 2 35,000 - 65,000 VP / Deputy Head / SVP Tier 1 70,000 - 110,000 6 - 8 years Tier 2 60,000 - 85,000 Head of Compliance / Regional Head Tier 1 85,000 - 140,000 8 - 10 years Tier 2 70,000 - 120,000*Bonus forms a major part of the remuneration package for senior roles and can be as much as 100% of base salary.Regionalor Country Head of Compliance can be earning around HK$110,000-180,000 per month base salary and bonus of 50-100%plus benefits. taylorroot.com
  • 8. Compliance: Market Update and Salary Guide 2013: Hong Kong Consumer / Retail Banking Title Years’ Experience Salary range (HK$) Assistant Officer / Officer / Analyst 0 - 3 years 16,000 - 26,000 Senior Officer / Associate / Assistant Manager 2 - 4 years 25,000 - 38,000 Manager / Senior Manager / AVP / AD 4 - 6 years 36,000 - 60,000 VP / Deputy Head / SVP 6 - 8 years 56,000 - 90,000 Head of Compliance / Regional Head 8 - 10 years 82,000 - 125,000*Regional or Country Head of Compliance who are earning on HK$125,000-150,000 per month and 30%-60% bonus. Insurance Title Years’ Experience Salary range (HK$) Assistant Officer / Officer / Analyst 0 - 3 years 20,000 - 40,000 Senior Officer / Associate / Assistant Manager 2 - 4 years 35,000 - 52,000 Manager / Senior Manager / AVP / AD 4 - 6 years 45,000 - 70,000 VP / Deputy Head / SVP 6 - 8 years 63,000 - 85,000 Head of Compliance / Regional Head 8 - 10 years 80,000 - 135,000*Regional or Country Head of Compliance can be paid beyond HK$110,000 per month and more than 30% bonus plus benefits. Private Banking / Wealth Management Title Years’ Experience Salary range (HK$) Assistant Officer / Officer / Analyst 0 - 3 years 18,000 - 38,000 Senior Officer / Associate / Assistant Manager 2 - 4 years 35,000 - 60,000 Manager / Senior Manager / AVP / AD 4 - 6 years 50,000 - 85,000 VP / Deputy Head / SVP 6 - 8 years 72,000 - 110,000 Head of Compliance / Regional Head 8 - 10 years 95,000 - 135,000*Similar scales to Asset Management, Regional or Country Head of Compliance. Senior roles can paid from HK$120,000-180,000 per month base salary and bonus of 50-100% plus benefits. taylorroot.com
  • 9. For more information on the compliance recruitment market please contact a member of theCompliance team below: Hong Kong Jenny Yeung Consultant jennyyeung@taylorroot.com.hk T: +852 2973 6333 Find Jenny on LinkedIn Singapore Jeremy Poh Consultant jeremypoh@taylorroot.com T: +65 6420 0500 Find Jeremy on LinkedIn UK Stuart Vines Associate Director stuartvines@taylorroot.com T: +44 (0)20 7415 2828 Find Stuart on LinkedIn Australia Amanda Atherton Director amandaatherton@taylorroot.com.au +61 (0)2 9236 9000 Find Amanda on LinkedInTaylor Root is a member of The SR Group. The SR Group is a specialist recruitment consultancydedicated to raising standards in the business environments that we serve. The sectors we coverinclude tax, legal, compliance, human resources, marketing and executive search, dealing witha substantial number of the world’s leading professional partnerships, multi-national corporationsand international banking groups as well as small to medium sized developing organisations. London Dubai Hong Kong 95 Queen Victoria Street Suite 614, Liberty House DIFC 1918 Hutchinson House London EC4V 4HN PO Box 506739 10 Harcourt Road , Central, Hong Kong T: +44 (0)20 7415 2828 T: +9714 448 7770 T: +852 2973 6333 Singapore Melbourne Sydney 30 Cecil Street Level 4,02 Level 12, 25 Bligh Street #21-03/04 Prudential Tower 520 Collins Street Sydney Singapore 049712 Melbourne, VIC 3000 NSW 2000 T: +65 6420 0500 T: +61 (0)3 8610 8400 T: +61 (0)2 9236 9000 Taylor Root is a member of The SR Group taylorroot.com @TaylorRootLegal