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Nikolai balzerAssociate director

SALARY SURVEY Compliance market update2019 has been an interesting and challenging year in The London Financial Markets – Brexit and various political factors plus market volatility have shown this year to be more challenging than previously anticipated. Banks have struggled to make profitable numbers and the focus has been on cost-cutting/saving as well as regrouping to determine the best direction. Fintech and Buy-side firms have instead grown their presence in London, as they are more agile, less regulated and have the ability to capitalise faster on opportunities.

Regulatory compliance has remained high on the agenda forall Buy and Sell-Side firms where the primary focus of theCompliance function has been to define the rules andframeworks for organisations in order to achieve compliancewith relevant laws and regulations. Whilst this will remain atthe core of the Compliance functions’ remit, we expect to seean increasing emphasis on ethics, culture and principles,progression towards being more of a ‘trusted advisor’ to thebusiness and providing a more competitive advantage.

Organisations are facing increasing scrutiny from externalstakeholders as well as regulators of their business practices.Those without a strong culture and questionable businesspractices can soon find themselves in the middle of a mediastorm, facing potential business and reputational damage.

Organisations with strong cultures within which peopleunderstand the organisations stance and principles will bebetter prepared to deal with unforeseen compliance risks.

Many organisations are however struggling to effectivelymeasure and assess their culture and are therefore missingopportunities to influence and shape the culture of thebusiness.

Although the compliance market grew in 2019 this was not asaggressive at 2018. Key growth areas were Product Advisory,Monitoring and SM&CR. We saw less activity in terms ofAML/KYC as a lot of these roles have been automated to someextent as well as off-shored to cheaper locations i.e. EasternEurope and Asia.

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The Senior Managers and Certification Regime (SM&CR) haseffected a lot of change where the aim is to reduce the harmto consumers and strengthen the market integrity my makingindividuals more accountable for their conduct andcompetence.

Other trends we have seen are that some Hedge-Fund clientshave been seeking senior level and high calibre individualswho have practical knowledge of overseas regulations such asthe SEC, BaFin, SFC & MAS. Although regulators have a lot ofcommunalities there are key differences which need to beunderstood and this is without taking into account the culturaldifferences. Also with key clients opening offices in Frankfurt aswell as Paris due to Brexit, language capabilities as well as

flexibility/ability to relocate seem to be key differentiators forsome of our clients.

Aggregating the market data we acquired during 2019, we sawsalaries increasing by 7-10% which is 4-7% down on 2018. Thisis however still a good increase considering many otherfunctions remain pretty flat there is still a “war for talent”particularly in the Investment Banking, Hedge-Fund &Investment Management arena. Candidates who candemonstrate strong knowledge of the regulations combinedwith the ability to communicate these verbally & in writingeffectively across the business are always in high demand.

Compliance – permanent, LondonHedge funds & investment managers – Basic salary (£ per annum)

Role – Buy Side Analyst Associate AVP VP Director CCO *

Advisory (1st-line of defense) 35,000 – 50,000 45,000 – 70,000 65,000 – 80,000 75,000 – 120,000 120,000 – 160,000 135,000 – 300,000

Monitoring & Financial Crime 35,000 – 45,000 40,000 – 65,000 60,000 – 70,000 75,000 - 100,000 100,000 – 120,000 135,000 – 300,000

* The large variance accounts for Local CCO's vs. Global CCO's which are at the upper end.

Role – Sell Side Analyst Associate AVP VP Director

Advisory 40,000 – 55,000 50,000 – 60,000 60,000 – 80,000 75,000 - 120,000 110,000 - 150,000

Transaction Monitoring 35,000 – 45,000 40,000 – 55,000 50,000 – 70,000 70,000 – 100,000 100,000 – 135,000

AML/KYC 30,000 – 40,000 40,000 – 50,000 50,000 – 60,000 60,000 – 80,000 80,000 – 110,000

Trade Surveillance 35,000 – 45,000 40,000 – 55,000 50,000 – 70,000 70,000 – 100,000 100,000 – 135,000

Control Room 30,000 – 40,000 40,000 – 50,000 50,000 – 60,000 60,000 – 80,000 80,000 – 110,000

Central Compliance 30,000 – 40,000 40,000 – 50,000 50,000 – 60,000 60,000 – 80,000 80,000 – 110,000

Monitoring/Assurance 35,000 – 45,000 40,000 – 55,000 50,000 – 70,000 70,000 – 100,000 100,000 – 130,000

Financial Promotions 30,000 – 40,000 40,000 – 50,000 50,000 – 60,000 60,000 – 80,000 80,000 – 110,000

Regulatory Affairs 40,000 – 55,000 50,000 – 60,000 60,000 – 80,000 75,000 – 110,000 110,000 – 140,000

Role - Sell Side

Head of Compliance 150,000 – 280,000

Deputy Head of Compliance 120,0000 – 180,000

MLRO 100,000 – 200,000

Banking, asset & wealth management & brokers – Basic salary (£ per annum)

Banking, asset & wealth management & brokers – Basic salary (£ per annuum)