Compliance roles continue to grow due to regulatory changes following the financial crisis and scandals involving banks. New rules have been introduced and existing ones tightened in areas like payments, digital banking, and consumer credit. There is high demand for compliance professionals with skills in financial crime prevention, like money laundering and sanctions compliance. Larger banks are focusing on centralized compliance functions to ensure consistency globally, while smaller companies sometimes find it easier to recruit. Asset managers are also building out compliance teams to address increased regulation from rules like MiFID 2, AIFMD and EMIR.

1. mcgregor-boyall.com
2016
UK & Europe | The Middle East | Asia Pacific
Compliance & Financial Crime
Overview
The number of positions within
compliance continues to rise. One reason
is simply the creation of new roles and
the “right-sizing” of the compliance
function.
Growth in areas such as payments,
digital and consumer credit provide
new opportunities for compliance
professionals - as well as the increased
spotlight on regulatory development,
policy and advisory roles. The increase
in these types of positions reflects how
many financial institutions are now taking
a longer term, more strategic view of
their compliance functions.
Many of the banks; having engaged
in irresponsible risk taking during the
run up to the financial crisis; were also
discovered to have been engaged in
market rigging and customer abuse,
resulting in further scandals and large
fines. Legislators and regulators have
tightened existing and developed new
rules and regulations which are being
rigorously enforced.
Financial crime as a function continues
to grow. This has being driven by a
change of approach by the FCA in their
annual business plan released in March
2015. Additionally, the FCA has placed a
special focus on the prevention of money
laundering, bribery and corruption.
There are currently high levels of
competition for in-demand compliance
professionals. It remains vital for some
companies to recruit and many are
beginning to take a more realistic
approach. If candidates with their
preferred suite of skills are not available,
they need to decide which skills they are
prepared to negotiate on. If they are not
prepared to do so then they need either
to pay a higher salary or continue with
an unfilled vacancy.
Often smaller companies have greater
success by avoiding the sometimes slow,
unresponsive recruitment processes of
some larger companies.
In the larger banking groups, there has
been a significant focus on creating a
central compliance function. Institutions
are continuing to restructure and grow
their central compliance functions to
ensure global consistency across key
disciplines. Due to continued regulatory
pressures, monitoring and surveillance
remains a key area of focus, with many
firms reviewing and enhancing the
capabilities of their teams.
Financial crime continues to be important
for large banking groups, particularly
across areas such as analytics, monitoring
and surveillance and sanctions.
As financial crime advisory functions
grow, candidates with strong technical
knowledge, excellent stakeholder
management skills and recent global
experience are in particularly high
demand. Sanctions remain a key area
within financial crime as a result of their
increasing use, for example by the EU
towards Russia. As a consequence, there
has been an increase in regulation and
further high profile fines.
AML transaction monitoring candidates
remain in high demand, particularly
those with strong system and process
improvement skills.
Most compliance and financial crime
functions remain in London, although we
are starting to see a number of London
Banking

2. based banks looking to move their teams into regional areas.
The primary reason for this is cost saving.
The ‘challenger banks’ are particularly well represented in
the regions. In the short term, it is creating issues as they are
attempting to recruit in regions of the country, where the pool
of expertise required simply does not exist. However, there are
areas in Scotland, the North West and West Yorkshire that all
have well established financial services industries.
Wealth and Asset Management
With the continued difficulty of creating dependable revenues
from their investment banking arms, large global banking
groups are investing in their wealth and asset management
businesses. We have seen a significant number of firms
creating new senior roles in wealth management compliance or
upgrading business leaders within these functions.
Asset management firms and hedge funds are building out and
strengthening their compliance and regulatory teams in line
with heightened legislative and regulatory change across the
globe. Key regulation affecting them includes MiFID 2, AIFMD
and EMIR.
There is recognition within the sector of the need to
emulate banks by taking a longer term strategic approach
to compliance. Companies in the sector understand that
regulation has become globalised and they require compliance
professionals with experience of international regulation.
mcgregor-boyall.com
Contact
Amreet Rai
arai@mcgregor-boyall.com
Tel: 020 7422 9209