Learn about the Compliance jobs market in London, find out the views of European Head of a leading Compliance Certification Association and get advice from a specialist Compliance recruitment consultant.

1. WHAT’S HAPPENING TO
LONDONCOMPLIANCE JOBS IN
2018?
By James Batters
Compliance Recruitment Consultant

2. CONTENTS
TABLE OF
01
02
03
06
07
09
12
A changing market: What’s happening to London compliance jobs in 2018?
Can the continual spend on compliance in the City be sustained for much longer?
Reduced product offerings against increased spending
Brexit signifying the time for cost saving
Views of the European Head of a leading Compliance Certification Association
A challenging time for the compliance sector
Advice from a compliance recruitment consultant

3. A CHANGING MARKET: WHAT’S HAPPENING TO LONDON COMPLIANCE JOBS IN 2018? 01
It’s been an offbeat year so far for the compliance contract market. Like for
like vs 2017, we have seen the number of day rate contract compliance roles
drop significantly - is it just a blip? Or has the once titanic compliance job
market struck a summer iceberg?
We are going to focus specifically on one of the most challenging areas of the
market this year - KYC, and will precisely be looking at how this has changed
over time in London.
We will explore the root causes of this, and look at how it could affect the
wider compliance job market.
A CHANGING MARKET: WHAT’S HAPPENING
TO LONDON COMPLIANCE JOBS IN 2018?

4. A CHANGING MARKET: WHAT’S HAPPENING TO LONDON COMPLIANCE JOBS IN 2018? 02
The year of 2012 held a major boom for compliance. The new, heavy handed
penalties from regulators in the post financial crisis period saw demand for
compliance professionals soar, and the supply not even coming close to
keeping up.
To entice graduates into the field, basic salaries went up and in an attempt to
hire directly from rivals, salary increases upon offer went up...and to fill the
void in the interim? Contractors.
Through the next couple of years, the number of fresh faced young
professionals entering the industry grew. Universities even began offering
bright graduates the opportunity to take an MSc in financial crime or
investigation in an attempt to tailor to industry demand.
Fast forward to 2018 and we have come to a point where, even though banks’
overall headcount has shrunk, compliance headcount had doubled. For tier-1
banks, compliance represents 3% of non-interest expenses. For small to
medium sized firms, compliance takes up close to 9% of costs.
This leads us to ask the question, can this increase in spend be sustained?
CAN THE CONTINUAL SPEND ON COMPLIANCE
IN THE CITY BE SUSTAINED FOR MUCH LONGER?
0
5
10
15
20
25
30
Compliance Headcount (Thousands)

5. A CHANGING MARKET: WHAT’S HAPPENING TO LONDON COMPLIANCE JOBS IN 2018? 03
REDUCED PRODUCT OFFERINGS
AGAINST INCREASED SPENDING
Currently, the average tier-1 bank spends in excess of $1 Billion per year on
compliance and, according to a survey of over 180 senior managers across
both buy & sell-side firms (Duff & Phelps), regulatory costs could double over
the next five years.
Post financial crisis, we have seen a reduction in product offerings of tier-1
investment banks, with only J.P. Morgan remaining truly tier-1.

6. A CHANGING MARKET: WHAT’S HAPPENING TO LONDON COMPLIANCE JOBS IN 2018?
REDUCED PRODUCT OFFERINGS
AGAINST INCREASED SPENDING
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Investment Bank
FICC
Equities
G10 Rates
G10 Foreign Exchange
Global Revenue
(USD Billion)
EM Macro
Credit
Secuntization
Commodities
Muncipal Finance
Cash Equities
Equity Derivatives
Prime Services
Futures & Options
Mergers & Acquisitions
Equity Capital Markets
Debt Capital Markets
Two Strongest Performers current year vs. Previouse year at constant exchange rate
CRISILCoalition’s LeagueTable analysis includes theTop 12 Banks at theCorporate $ Investment Banking level globaly.
The following tiering applies
IBD
Rank 1-3 Rank 4-6 Rank 10-12Rank 7-9 NotActive/Analysed (Source: https://news.efinancialcareers.com/uk-en/256351/tier-1-tier-2-tier-3-investment-bank)
04

7. A CHANGING MARKET: WHAT’S HAPPENING TO LONDON COMPLIANCE JOBS IN 2018? 05
REDUCED PRODUCT OFFERINGS
AGAINST INCREASED SPENDING
If offering certain products becomes unmanageable due to compliance risk vs
reward, could we see yet a further reduction in product offering from the top
banks? Certainly before turning away from business, the first option is to cut
operational costs where possible. This is what I believe to have already begun
in the on-boarding space, and will continue into the rest of the compliance
market.
Prime examples of this are firms offshoring or nearshoring the basic CDD,
taking these jobs away from the expensive capital. We have seen the likes
of Citi, J.P Morgan, Deutsche Bank and Barclays move teams out to Belfast,
Bournemouth, Birmingham and Manchester respectively.

8. A CHANGING MARKET: WHAT’S HAPPENING TO LONDON COMPLIANCE JOBS IN 2018? 06
BREXIT SIGNIFYING
THE TIME FOR COST SAVING
I believe that this increase in spend is unsustainable at the current rate, and that the
aforementioned nearshoring is the first evidence of this. My prediction is that the
compliance market is about to go through all of the typical cost saving methods that
departments like ‘contact centers’ and (to a certain extent) IT have seen before.
This will include:
• The offshoring of rudimentary tasks, CDD refresh etc.
• Gradual training and development of these foreign hubs. With upskilled staff
more complex actions can then be offshored such as EDD and financial crime.
• Investment into technology, rather than headcount.
• Further automation of processes, and tasks such as assurance & surveillance.
Brexit will no doubt have a huge effect on the UK job market. Although there is
uncertainty about how the final ‘deal’ (or no-deal) will manifest, what we do know
is that the majority of large banks in London are already hiring Brexit planners and
creating contingencies for almost every possible outcome.
The preferred locations for moves seem to include Ireland for big US banks and
Frankfurt for large EU banks. Luxembourg is also a notable option for many, and, along
with Frankfurt, is a very strategic location geographically for attracting the top talent
on the continent.

9. A CHANGING MARKET: WHAT’S HAPPENING TO LONDON COMPLIANCE JOBS IN 2018? 07
THE VIEWS OF EUROPEAN HEAD OF A
LEADING COMPLIANCE CERTIFICATION ASSOCIATION
To further evidence this probable prodigious traversal of the English channel
by banks, I interviewed the European Head of a leading Compliance
Certification Association, one of the leading membership organisations
dedicated to the international prevention of money laundering.
James: “Can you provide any statistical information of the growth
of the compliance market, perhaps number of market
leading compliance certificate holders or new applicants
year-on-year from 2012 to 2018?”
“Certified members of our association are growing at around 50%
per year. This is a huge level of sustained growth, largely down to
the international recognition of the Compliance Certification.”
In the near future, having an internationally recognised certification could pay
dividends should banks move abroad and candidates look to work remotely or
relocate.
This growth could also be a sign of a poor job market;
James: “Have you seen the number of applications abroad rise
during this period, perhaps in Eastern Europe? Do you have
any statistics you can share on this?”
“In Lithuania/Estonia/Latvia (Baltic states) the number of people
certifying is 400-500% higher than the rest of the world average.
Lithuania seems to be setting itself up as compliance center of
excellence. Poland has been like this for a couple of years now,
with 200-300% over the last 2 years.”
“More people than ever are applying for our certification,
knowing that in today’s job market, a person needs to
develop themself as much as possible to succeed.”
“
”

10. A CHANGING MARKET: WHAT’S HAPPENING TO LONDON COMPLIANCE JOBS IN 2018?
THE VIEWS OF EUROPEAN HEAD OF A
LEADING COMPLIANCE CERTIFICATION ASSOCIATION
Another notable comment made on this was that Vendors, the banks
themselves, have a big presence. They are actively training and upskilling
their staff specifically in these regions.
James: “Do you have any advice on how a more junior candidate
could differentiate themselves in this saturated market?”
“Candidates should aim to gain a Compliance Certification after 1-2
years of work experience. I recommend they join their local AML
networking group (our association runs chapters in most
EU countries, free of charge and arrange meet-ups). You must self
drive your own development.”
James: “What effects do you believe major upcoming
geo-political change (such as Brexit) will have on the
compliance industry?”
“We are seeing large UK based firms taking out banking licences in
other cities (Frankfurt/Paris), as well as expanding premises in
Poland significantly. Firms are changing their corporate structure to
include Luxembourg and Ireland more, or even establishing full
entities in these locations.”
08

11. A CHANGING MARKET: WHAT’S HAPPENING TO LONDON COMPLIANCE JOBS IN 2018?
A CHALLENGING TIME FOR
THE COMPLIANCE SECTOR
With the cost of compliance growing each year, and with no sign of regulators
loosening their grip, banks are being forced to look for ways to cut operational
costs.
We are seeing the early signs of this with more limited roles already moving
away from the capital, and major plans being in place to move further
departments abroad, with banks upgrading both their Eastern European
infrastructure as well as upskilling staff in advance. Brexit appears to have
added some impetus to the dissolution of the London compliance job market.
Technology and automation also appears to be a potential threat to some
headcount, although there will always be a need for someone to write the
rules and monitor performance of the machines. Technology solutions are
often touted as the largest threat to jobs, and whilst this is a growing area in
spend, and would naturally offer a lower overhead (once up and running) than
people, I do not believe it is currently as large a threat as made out.
09

12. A CHANGING MARKET: WHAT’S HAPPENING TO LONDON COMPLIANCE JOBS IN 2018?
A CHALLENGING TIME FOR
THE COMPLIANCE SECTOR
Just look at the Thomson Reuters cost of compliance graph - only one third of
over 900 senior compliance professionals foresee more involvement in
reg-tech, a significantly lower number than all other surveyed areas.
69%
60%
54% 52% 51%
48%
33%
5%
0 %
10%
20%
30%
40 %
50%
60%
70%
80%
Over the next 12 months I expect more compliance involvement in...
Implementation
of a demonstrably
complaint culture
and tone from
the top
Assessing
effectivenes
of corporate
governance
arrangements
Liaison with and
up-skilling of
senior managers
and board
Setting of
complaince
budget and other
risk management
resourcing
Setting of risk
appetite
Assessing cyber
resilience
Assessing
fintech/regtech
solutions
Other
source:https://blogs.thomsonreuters.com/financial-risk/risk-management-and-compliance/cost-of-compliance-report-2017-is-there-a-new-risk-approach/
10

13. A CHANGING MARKET: WHAT’S HAPPENING TO LONDON COMPLIANCE JOBS IN 2018?
A CHALLENGING TIME FOR
THE COMPLIANCE SECTOR
I am keen to stress that it’s not all doom and gloom!
I predict that smaller banks, UK entities of foreign banks and other mid-sized financial
services firms such as brokers, payments providers and insurers will remain largely
domesticated due to not having the pre-existing infrastructure or capital to set up
abroad.
These areas will see better performances job-wise, although there may be a shift away
from day rate contracts to fixed term contracts and permanent roles.
11

14. A CHANGING MARKET: WHAT’S HAPPENING TO LONDON COMPLIANCE JOBS IN 2018?
ADVICE FROM A COMPLIANCE
RECRUITMENT CONSULTANT
Carry on developing yourself where you can; look to certifications from
leading bodies such as ACAMS, the ICA, or CISI as it will not only build on
your knowledge but also help to get your CV to stand out amongst the crowd.
Be patient in a difficult market - there are more candidates and less roles. Be
prepared to be involved in multiple interview processes at one time in order
to give yourself the best possible chance of securing a good job offer. If you
aren’t succeeding at first, don’t panic - you most likely aren’t doing anything
wrong.
Consider different options; whilst it’s always commendable to ‘stick to your
guns’ on what you are looking for, this may be the time to look at different
types of roles. We are seeing a large increase in the number of fixed term
contracts vs day rate contracts. If you have never considered this before, now
would be a great time.
If you have only worked for global banks in the past, consider your options with
different types of firms. You may find that the less siloed approach they offer and
often more high-risk appetites may well add a new string to your bow.
I’m always happy to have a friendly and informal conversation about the pros and
cons of career choices, and offer my own advice. Feel free to reach out to me if you
would like any further information.
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15. A CHANGING MARKET: WHAT’S HAPPENING TO LONDON COMPLIANCE JOBS IN 2018?
JAMES BATTERS
COMPLIANCE RECRUITMENT CONSULTANT
T: +44 207 092 0281
E: jbatters@morganmckinley.co.uk
For information on how to price yourself in today’s job market, check out our salary guide here:
https://www.morganmckinley.co.uk/article/2018-compliance-salary-survey-guide
To see our compliance team’s Q2 review, click this link:
https://www.morganmckinley.co.uk/article/compliance-recruitment-kicks-throughout-q2-2018
To browse live compliance jobs with Morgan McKinley, take a look at this page:
https://www.morganmckinley.co.uk/compliance-jobs
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ADVICE FROM A COMPLIANCE
RECRUITMENT CONSULTANT

16. A CHANGING MARKET: WHAT’S HAPPENING TO LONDON COMPLIANCE JOBS IN 2018?
CONTACT US
Morgan McKinley | 61 Aldwych | London | WC2B 4AE
+44 (0)20 7092 0000 london@morganmckinley.co.uk
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