Regulatory Practice 2013 Salary Survey

PSD

SALARY SURVEYApril 2013Regulatory Practice

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PSD

Regulatory Practice April 2013Matchmaking

Is what we do and we do it very wellPSD is a leading Executive and Management recruitment organisation. We operate across a range of functions, industry sectors and countries, providing specialist expertise in each area. Our reputation is based upon our ability to deliver outstanding results, exceptional levels of service and a real understanding of our specialist markets. We provide comprehensive recruitment services for both single appointments and large scale assignments, permanent and interim on an International basis.

We operate through a matrix structure organised by geography, function and specialist industry sector. Our principal specialisms are Compliance, Financial Crime, Data Protection & Privacy, Risk, Marketing, IT, Finance, Legal, HR, Customer Contact, Engineering and Design, Pensions & Investment, Procurement and Supply Chain, Surveying and Planning. Our principle objective is to be the leading specialist in our chosen markets, with an outstanding reputation for the quality and effectiveness of our services.

For a confidential discussion about your requirements or to discuss your career aspirations please contact Kirstie Burn 020 7970 9712 ([email protected]) or Paul Geist on 020 7970 9774 ([email protected])

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PSD

Regulatory Practice April 2013Regulatory Practice

Welcome to PSD’s Regulatory Practice 2013 Salary Survey, an essential guide to pay and reward across the Banking & Financial Services sectors.It is the result of a comprehensive salary survey completed online by permanent and interim Regulatory Practice professionals responding to an email invite and PSD’s own database of 15,000 professionals.

Contents

02 Matchmaking03 Regulatory Practice04 Analysis07 Banking & Financial

Services09 Banks & Building

Societies10 General Insurance &

Mortgages11 Life & Pensions,

Outsourcers12 Management

Consultancy13 IFA / Networks14 Credit Cards /

Payments15 Regulatory Bodies16 Regulatory Practice17 Contacts

We believe it is the most useful and comprehensive of all Regulatory salary surveys, allowing Regulatory leaders, HR professionals and candidates to analyse trends and benchmark their own company’s reward policy. The survey focuses purely on executive and management roles within the Regulatory field and reflects the level of individuals on which PSD focuses.

Our results have been gathered during another challenging year which has seen a double-dip recession in the UK, the continuing crisis in the Eurozone and pace of growth in the emerging markets of China, India and Latin America.

During 2009 to 2011 permanent candidates were moving for improved job security, career prospects and more interesting roles. Although these factors are still a high priority, financial incentives are becoming increasingly important. As a result, it has become more difficult to find good people willing to move over the last 12 months.

We expect organisations to demand more from their Regulatory control functions as the need to stand out from the competition through stronger brand, communications and customer experience increases in importance.

Completed by over 2500 professionals.

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PSD

Regulatory Practice April 2013Analysis

Market Review of 20122012 in entirety was a fairly challenging year due to an inconsistent market in regards to predicting and forecasting the markets’ performance Quarter by Quarter and over the year. The actual Global, Euro and macro economic factors all affecting both domestic and International Finance, many of our clients were awaiting outcomes in regards to Regulation and Legislative changes as well as availability of capital to market and new liquidity regulations.

Q1 2012 began with some uncertainty and concern over the Euro Money crisis and how this could or would affect the Banking & Financial Services markets. This impact of the Eurozone crisis, how the banks had no money combined with an increasing number of significant European countries concern over sovereign wealth, meant a vigilant approach to spend and budgets.

Recruitment Market 2012

Overall it was a cautious and slow moving market where the interview process was often procrastinated. We started to see clients reduce the need to bring in expertise on Solvency II and other work.

The banks have been hiring in places, but from the external recruiter’s perspective this has not necessarily offered great opportunity as often the sourcing has primarily come from the redeployment of staff internally or, if they must seek external talent, using this as an opportunity to promote within and then hire in at a junior level.

Also in general, fragmentation of the sector has created opportunities. We worked with a significant number of; start-up firms, overseas firms looking to establish in the UK (particularly originating from the US), firms looking to further invest in existing Compliance & Risk resource and also requirements for strong regulatory experience as the FSA intensifies it’s approach to specific markets such as the Payments industry.

Hiring managers held high expectations of what they wanted to attract into the Banks / Firms, however the market was quite static as those looking were few and far between. This meant that we experienced a more demanding client side whilst the choice of candidates in the market showed signs of contracting.

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Market Review of 2012Understandably spend and budgets were key factors in all decisions in regards to recruitment and therefore the appointment of new positions was only approved when there was full confidence from all parties involved in the process. Sign off often involved more levels of senior authority than we had experienced in 2011 (often up to Board level).

Organisations’ desire to find candidates who combined qualifications with relevant sector experience and their refusal to compromise on specifications produced pockets of skill shortages, for which those candidates with fairly specialist skill sets and rare combination of experience were in high demand. The core challenge of this was the outcome of counter offers proving successful in more opportunities than we would usually experience. However, those people were soon to return to PSD as the initial salary increase did not compete with other key factors where there were continued missed expectations.

Social Media

Social media and new forms of networking such as Linked-in particularly became a significant part of our world. Social media and Linked-in allows information and communication to flow in a current status so has been a huge benefit to our industry. However the relationship PSD has with our candidates has still been paramount in our approach to success. Candidates and Recruitment Partners have used the search tool to identify people with whom we would like to connect. The passive candidate market where PSD’s knowledge of the inactive candidate pool has been invaluable to our clients.

The actual skill and confidence in working closely with a trusted and professional recruitment / search partner has been the ultimate reason in an individual considering an approach to a firm such as PSD and assisting with final decisions on offers. The personal contact has not lost it’s benefit as well as the interest in working with an impartiality of advice on career moves rather than direct discussions with the hiring firm / manager.

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PSD


Market Review of 2012Key Skill Set Demand

AML and Financial Crime, Product Advisory, Monitoring and Policy/ Regulatory Affairs were the most sought-after specialisms. Client Asset Sourcebook (CASS) and ‘suitability and appropriateness’ specialists in the light of MiFID II were also strong needs.

Expertise in AML, Financial Crime, Privacy and Data Protection have also been in higher demand in 2012 due to an increase in legislation and observations from the regulatory bodies in these areas.

Compliance monitoring is a key skill which is also seeing further resource development across both retail and investment markets as well as hiring in those who can manage and liaise with FSA in a regulatory capacity.

2013 Predictions

In 2013, we expect a stronger year of more consistent performance and are already seeing continued requirements across Financial Crime & AML, more Senior level requirements across Compliance and Regulatory Risk and Interim Heads of. The LCO of the FSA and ever intensifying presence of Supervision from regulatory bodies will uncover more opportunities for Compliance & Regulatory Risk professionals. Consumer Finance firms soon to come under the FCA guidance and Payments firms who are aiming to gain an e-money licence and establish as an EMI and come under the Payment Services Directive will require further expertise in house. Those candidates with niche skills and complementary combinations of experience will be most in demand as stand out in regards to expertise.

07Regulatory Practice April 2013

PSD

Banking & Financial Services2012 has been a challenging year for the sector with restructuring and redundancies in the larger banks. This will continue in 2013. The main skill sets in demand are likely to be Policy, Advice & Guidance. Within the Banking & Financial Services markets the Cards arena has been buoyant with lots of innovation and NPD around digital and mobile payments.

Although market conditions are challenging, there is movement at senior management level within the Regulatory functions, and we expect this to continue throughout 2013.

Salaries remained fairly flat in 2012, with moves being made for increased career opportunities, as restructuring and shrinkage of departments reduced internal opportunities. Salaries on hiring in external expertise will need to demonstrate an increase of a substantial enough offer to give the preferred candidate confidence this is the right move if leaving a secure post to a new venture. We expect in 2013 there will be an increasing focus on retention and development of talent as expectation increases around growth in 2013/2014.

Retail Banks are looking to invest in Group Regulatory functions and structure strong central controls leading and guiding business units within the Banks. The Libor scandal and focus around interest rate swaps is also encouraging Banks to look for monitoring and policy people to regulate the operations.

The Insurance sector has seen a consistent level of recruitment with product specialists in high demand, as Insurers look to review their offering in light of legislative impacts such as the Retail Distribution Review.

Demand for interim and contract roles within the sector in 2012, especially within Retail Banks, will continue in 2013 to support headcount challenges and project rollouts.

Life & Pensions firms have remained quite static with demand arising mainly from the BPO market taking over outsourced compliance contracts with larger providers. We expect the conditions in 2013 to be similar.

Management consultancy firms will experience an upturn in engagements within the Regulatory arena in 2013, due to the increased level of supervision coming from the Regulator, the LCO of the FSA and more firms coming under the guidance and control of the FCA (ie Payment & Consumer Finance firms).

The IFA market continues to respond to RDR and Compliance teams have become more centralised. The field based compliance positions are on the decrease and head office teams are growing in monitoring, advice & guidance.


PSD

Banking & Financial ServicesCard Association experience, knowledge of the payment services Directive, permission and e-money licensing experience will all be high demand skills for the payments sector. Payments/cards firms will always look for excellent understanding of AML, Financial Crime and Risk rules and regulations.

With the LCO to take place - the FCA (Financial Conduct Authority) & PRA (Prudential Regulatory Authority) will create the change in the markets reflecting the new structure. This will create opportunities for FCA / PRA people to move into industry and then the Regulator needing to build strong resource in-house to support the external presence required in the Banking & Financial Services firms.


PSD

Banks & Building Societies

LONDON SOUTH ENGLAND

Group Director of Compliance 150-250+ 120-200+

Director of Compliance 120-150 100-130

Head of Compliance 80-120 75-110

Senior Compliance Manager 65-90 60-75

Compliance Manager 50-65 45-60

Group Director of Financial Crime 150+ 125+

Director of Financial Crime/MLRO 100-125 90-115

Head of Financial Crime 90-130 80-110

Senior Financial Crime Manager 65-80 55-75

Financial Crime Manager 45-65 40-55

Group Director of Privacy/DP 140-175 100+

Director of Privacy/ DP 100-135 80-100

Head of Privacy/ DP 75-100 65-80

Senior Privacy/DP Manager 55-75 50-65

Privacy/DP Manager 45-55 40-50

Group Operational Risk Director 125+ 110+

Operational Risk Director 100-125 95-110

Head of Operational Risk 90-110 75-95

Senior Operational Risk Manager 70-90 60-75

Operational Risk Manager 50-70 45-60


PSD

General Insurance & Mortgages


Group Director of Compliance 150-200+ 120-150+





Group Director of Financial Crime 150 125+





Group Director of Privacy/DP 100+ 90+

Director of Privacy/ DP 90-100 80-90

Head of Privacy/ DP 70-90 65-80

Senior Privacy/DP Manager 60-70 55-65

Group Operational Risk Director 125+ 110+

Operational Risk Director 95-120 85-100





PSD

Life & Pensions, Outsourcers


Group Director of Compliance 150+ 110-120









Operational Risk Director 120+ 100+




Operational Risk Consultant 45-60 30-40


PSD

Management Consultancy


Head of Sector 200+ 200+

Partner 200+ 175+

Associate Partner 150-175 120-150

Director 120-150 100-115

Senior Manager 85+ 60-80

Manager 60-80 55-70


PSD

IFA / Networks






Head of T&C 75-100 65-85

T&C Manager 55-70 50-65

T&C Supervisor 30-55 30-50






PSD

Credit Cards / Payments


Group Director of Compliance 150+ 150+

Director of Compliance 150 100-125



Director of Financial Crime 100-130 90-110







PSD

Regulatory Bodies


Director of Compliance 110-150+ 100-110




Director of Financial Crime 110-120+ 100-125




Head of Privacy or DP 80-125 65-80

Senior Privacy or DP Manager 55-75 55-65



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PSD

Regulatory Practice April 2013Regulatory Practice

Our reputation is built on our ability to deliver outstanding results and exceptional levels of service.Established in 1992, our Compliance, Risk & Fraud practice comprises 30 consultants in locations worldwide with specialist teams dedicated to the following sectors:

Functions

We recruit across all job functions in Compliance, Risk & Fraud from Analyst to Group Directors:

Recruitment Services

Operating at executive, management and board level, we provide comprehensive recruitment services for both single appointments and large scale assignments delivered through a rigorous project management system.

Our approach is open and collaborative and recommendations are made only after careful consideration and analysis of clients’ specific needs. Our core services are:

• Banking • Financial Services• Business Services

• Not for Profit• Regulatory Bodies• Professional Services

• Compliance • Regulatory Risk • Regulatory Affairs • AML• Privacy/Data Protection• Financial Crime

• Market Risk• Credit Risk• Enterprise Risk• Operational Risk• Quantative Risk• Fraud

• Executive Search • Advertised Search• Contingency Search • Contract & Interim

• Market Mapping• Psychometric Testing• Salary Benchmarking• Client Forums


PSD

REGULATORY PRACTICE TEAM FOCUS

Kirstie BurnAssociate [email protected]://www.linkedin.com/pub/kirstie-burn/8/514/8a0

Specialising in Compliance, Regulatory Risk, Financial Crime, AML, Sanctions, Data Protection, Privacy and Training & Competence in the mid to senior markets in firms across London and Southern England.

Paul GeistPrincipal [email protected]://www.linkedin.com/in/paulgeist

Specialising in Compliance, Regulatory Risk, Financial Crime, AML, Sanctions, Data Protection, Privacy and Training & Competence in the mid to senior markets in firms across London and Southern England.

Contacts

mailto:kirstie.burn%40psdgroup.com?subject=Response%20from%20Salary%20Survey

http://www.linkedin.com/pub/kirstie-burn/8/514/8a0

http://www.linkedin.com/pub/kirstie-burn/8/514/8a0

mailto:paul.geist%40psdgroup.com?subject=Response%20from%20Salary%20Survey

http://www.linkedin.com/in/paulgeist

http://www.linkedin.com/in/paulgeist