Asia Compliance Salary Guide

Transcription

1 Asia Salary Guide 2018 Pure Search Pure Search puresearch.com LONDON HONG KONG SINGAPORE NEW YORK BERLIN

2 Introduction This salary guide provides an overview of recruitment and remuneration affecting compliance professionals in Financial Services across Hong Kong and Singapore. In it we discuss what is driving recruitment for compliance professionals, exploring the distribution of demand amongst skillsets and roles, the reasons behind it and the effects on remuneration. In addition to market commentary, we have provided comprehensive salary information broken down by specialism and level. About Pure Search Established in 1999, Pure Search is a privately-owned recruitment firm with specialist divisions covering: Legal Tax Finance Risk Treasury Global Markets Human Resources From our offices in London, New York, Hong Kong, Singapore and Berlin we work with businesses across the globe to help them attract, engage, develop and retain their people. Our clients are leading businesses in Commerce and Industry, Financial Services and Professional Services; we work with many FTSE, Nasdaq and AIM listed companies, as well as the Big 4 and international Law firms. We identify the best individuals to lead organisations forward and take pride in partnering not only with clients but also with candidates throughout the trajectory of their career, ensuring both realise their full potential. Since our inception, we have successfully delivered on over 6,000 mandates. Our loyal client base is a testament to the quality of our delivery, 76% of our business is derived from repeat clients.

3 Asia Salary Guide Foreword 2017 saw another busy year in terms of compliance recruitment across Asia, though it is fair to say that the frenzied hiring seen in 2016 is now behind us as institutions have moved more towards consolidation mode following a period of significant growth. As compliance teams have expanded in size, attention has turned to off-shoring of junior functions which can be performed in lowercost locations such as India, Manila and Kuala Lumpur and upgrading of senior roles within the regional hubs of Hong Kong and Singapore. The growth of the Asian economy and continuous arrival of new businesses to the region, complemented by an increasingly sophisticated regulatory environment, means the demand for talent within the compliance space in Asia is unlikely to subside. It would appear that now the majority of the bulk hiring has been done, there is a much greater emphasis on quality and the bar has been raised significantly in terms of expectations around qualifications and experience. We are seeing legal professionals being more actively sought out for compliance positions, particularly senior advisory roles across the IBD and global markets space within banking. Such a move can often accelerate career progression in terms of title and responsibility and the salary gap between legal and compliance professionals in senior positions has all but disappeared in some instances compensation levels for the compliance roles are much higher. The proliferation of emerging technology is undoubtedly going to challenge regulatory bodies across Asia and as such, we expect to see an increase in demand for regulatory and compliance professionals as regulations emerge and tighten within this space. Demand for compliance professionals with IT, Forensic & Investigations experience will continue to rise as cybersecurity and protection of data remain a key priority for companies and financial institutions. Competition for high-calibre compliance professionals in Asia remains high. Financial institutions and corporates need to continually evolve their hiring and retention strategies in order to ensure they are attracting the best talent and keeping them. I would like to take this opportunity to thank everyone who engaged with Pure s financial services business in We hope you will find this guide informative and we look forward to working with you in what we expect to be a very busy Liam Richardson Managing Director, Asia 3

4 Asia Salary Guide Hong Kong Hiring within financial services remains stable. Though fewer regulations have affected compliance over the last few years, larger banks are maintaining their frameworks and are offering senior replacement roles arising from internal promotions. Smaller firms across sectors remain in hiring mode and are focused on attracting candidates from banks to set up new platforms. The establishment of the Insurance Authority (AI) has also set the expectation that tighter controls are on the horizon, which should support opportunities in compliance within In general, compliance testing, monitoring and quality assurance have been key areas of demand throughout We have seen the emergence of new roles within the compliance testing field with every bank having their own name for the function. This is in line with the trend that lines of defence are being brought forward, with businesses bringing in more checks before audit. is increasingly involved at the first stage of planning as a business partner, no longer purely regarded as a back-office function. Within 2018, we expect an increase in demand for product knowledge and regulatory familiarity with the HKMA and HKSFC. We have seen the continued development of Anti-Money Laundering (AML) policies over the last three to four years, which is driving opportunities for candidates with AML and Know Your Client (KYC) advisory experience. We expect a greater emphasis on AML hires within Australian banks in particular, as they bolster their compliance teams to handle the outcome of recent commission enquiries. FinTech companies with a Chinese background are also expected to increase hiring in Pressure on compliance is expected as regulators address the frameworks for payment products, the risks surrounding click-to-buy processes and investment products. The Chinese investment banks should remain active and we are already seeing AML and Head of roles coming through. With the leadership in place, we expect banks to fill out their teams late into A Mandarin language skillset is consistently attractive within this sector. Within the US banks, we have seen a reduction in the volume of junior level roles, as they look to offshore compliance functions. A key driver for outsourcing to India, Manila and Kuala Lumpur is the lower cost of English speaking talent within these locations and a growing technical skillset in compliance and audit. Retail banks and private banks have prioritised searches for candidates with product suitability expertise over the last year and we expect hiring to remain stable as processes tighten. Within insurance, MPF knowledge has been a key hiring trend throughout With the expansion of distribution channels through brokers and agents, new risks are emerging within insurance. Though no immediate action is expected from the new insurance authority, we expect that by the end of 2018 there will be a tightening of regulations and mandates affecting the insurance space. These will have an impact on hiring and organisations are preparing budget to secure additional regulatory focused headcount. The volume of roles remains at AVP and VP levels, in product sustainability, compliance testing, assurance and AML. We are seeing significant growth within asset management for investment compliance, as trading increases. Mid-level AVP candidates can still attain a 20-30% increment for moves, while the market for senior candidates remains at around 10-15% and likely to remain relatively flat into next year. Annual increments have been in line with or slightly above inflation. 4

5 Asia Salary Guide Salary Guide HKD per annum: Base Banking Control Room Product Central EDD / KYC / Surveillance / Assurance AVP k k k k k k VP 720k-1.2m 780k-1.44m 720k-1.2m 780k-1.44m 600k-1m 750k-1.25m Director m m m m m m MD / Regional Head 1.8-2m m m m m m+ Investment Management Advisory Central EDD / KYC / Surveillance / Assurance AVP k k k k k VP 750k-1.25m 690k-1.05m 690k-1.05m k 690k-1.05m Director m m m 945k-1.5m m MD / Regional Head m m m+ 1.5m m+ Insurance Regulatory Distribution EDD / KYC / Surveillance / Assurance AVP k k k k k VP 720k-1.2m 660k-1m 660k-1m k 660k-1m Director m 1-1.5m 1-1.5m 900k-1.44m 1-1.5m MD / Regional Head 1.8-2m m m+ 1.44m m+ There are anomalies outside these bandings where exceptional compensation structures apply. For bespoke salary information, please contact Pure. 5

6 Asia Salary Guide Singapore Providing political stability, a supportive banking infrastructure and a base for business in Southeast Asia, organisations are continuing to locate their Asian headquarters in Singapore. Throughout 2017 we have seen a shift in preference among investment banks, with relocation of regional heads from Hong Kong to Singapore to realign businesses. As organisations build up their teams, we expect the hiring market for 2018 to remain positive. Though compliance is not the buoyant market of the past 3-5 years compared to other disciplines, it remains a standout market in terms of growth of function versus the size of the candidate pool. Competition for compliance talent remains and demand still outstrips supply. The focus for 2018, however, is shifting away from volume hiring to identification of strong talent, slowing down the speed of hires as clients seek quality candidates. (FCC) and Anti- Money Laundering (AML) remain major focus areas into As Singapore cements its position as a FinTech hub, the demand for candidates with AML, payments and regulatory compliance experience continues. We have seen a number of moves at Director level from financial services compliance into FinTech start-ups, to take up Head of Control roles. This has created gaps within financial services at that level, which in turn, are increasingly being filled by candidates with experience in technology led organisations. On the retail side, we expect a significant increase in FCC hiring throughout 2018 as the Monetary Authority of Singapore (MAS) continues to set guidelines on how institutions protect themselves. As mobile payment regulations, data handling, marketing materials, audit and inspections fall under new guidelines, candidates with competencies in AML, FCC and payment regulations will be increasingly sought after. In line with this, a number of senior regional roles for Southeast Asia are materialising across the FCC space. Within corporate and investment banking, strong AML and FCC experience continues to be in demand and we are seeing the volume of hires in these areas. An emerging trend is for senior advisory professionals to support investment banks and global markets. These roles are strategically important, and we are seeing more lawyers move into compliance advisory for their product knowledge, understanding of the business, strong communication skills and stakeholder management skills. Within private banking, we are seeing a number of roles for experienced compliance professionals with competencies in AML, FCC, payments and regulatory compliance. Just as banks have invested heavily over the last few years in fulfilling MAS s regulatory demands, we are now seeing attention shift to asset management. The demand for compliance professionals, particularly investment compliance, continues as Anti- Bribery and Corruption (ABC) teams are being established and fraud teams expand. Along with the growth of FinTech and its impact on compliance, we expect to see the use of Artificial Intelligence (AI) and automation for some core functions like Know Your Client (KYC) and monitoring and surveillance. Whilst these technical advances are not prevalent at an execution level, they are increasingly on the agenda of Chief Officers as institutions look to save costs where they can. As with recruitment across all sectors, appetite for local talent remains a priority in Singapore. However, there is a greater deal of flexibility from the Ministry of Manpower (MOM) in accepting overseas hires in compliance, given the lack of specialised skillsets locally. Overall, market sentiment is positive and competitive salaries are available for experienced compliance candidates. Despite a slow-down in hiring speed now that teams have been established in response to MAS mandates, the focus on higher quality professionals is seeing those hires receive a premium. Candidates at AVP to VP level can command the greatest salary increments for moves, which in some cases can be 20-30% increases. This represents the fact that the supply of good AVPs doesn t meet demand and has become a pain point for organisations. Moves for senior candidates can achieve 10-15% increments. 6

7 Asia Salary Guide Salary Guide SGD per annum: Base Banking Private Side Advisory Control Room Sales & Trading Advisory Central EDD / KYC/ AVP k k k k k k VP k k k k k k Director k k k k k k MD / Regional Head k k k k k k+ Surveillance / Assurance AVP k VP k Director k MD / Regional Head Investment Management k+ Advisory Central EDD/ KYC / Surveillance / Assurance AVP k k k k k VP k k k k k Director k k k k k MD / Regional Head k k k k k+ Insurance Regulatory Distribution EDD/ KYC / Surveillance / Assurance AVP k k k k k VP k k k k k Director k k k k k MD / Regional Head k k k k k+ There are anomalies outside these bandings where exceptional compensation structures apply. For bespoke salary information, please contact Pure. 7

8 Asia Salary Guide Key contacts At Pure Search we strive to maintain a high quality of service, adding value for our clients outside of immediate hiring needs, and providing bespoke career advice for our candidates. We would like to thank all who continue to partner with us. For a more in-depth overview about the market, tailored salary benchmarking, or to discuss your hiring needs, please contact: Liam Richardson Managing Director, Asia liamrichardson@puresearch.com I Winnie Leung I winnieleung@puresearch.com I Li Chen I lichen@puresearch.com I Paul Evans I Financial Services paulevans@puresearch.com I MOM Reg No: R Please note: Salary ranges are based on information provided by Pure Search clients, candidates and other sources and as a result are approximate guides only. They relate to base salaries only and exclude superannuation, bonus, incentive schemes and stock options. These are indicative market ranges and are dependent on variable factors, including but not limited to experience level, market conditions, company size, industry sector and job scope. Disclaimer: Pure Search accepts no responsibility for any action taken or not taken in reliance on the information provided. No warranties, expressed or implied, statutory or otherwise are given to the extent permissible under the relevant legislation. The contents are protected by copyright. 8

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