As anticipated the market within the alternatives space has remained busy in Q1 of 2023, and hiring continues to remain competitive, however, the quality of compliance talent available has increased as we head more towards a client-driven market, which we haven’t seen since pre-pandemic.
We have seen a number of the US HQ’d alternative funds hire dedicated UK regulatory compliance specialists into newly created roles in the UK creating more senior movement, which in turn opens up the hiring market.
There have been over 50 hedge funds in consultation with the Dubai International Financial Centre (DIFC) to set up offices, which would allow them to be involved in capital markets in the Middle East/Asia regions. The DIFC is looking for firms to have dedicated persons on the ground, with UK-based compliance professionals being targeted with relocating packages or as a last resort covering the middle east from the UK, which is not sustainable long term.
Speaking with private equity firms here in London, the priority in terms of hiring is in Europe rather than in the UK, mainly due to low turnover in 2023 and growth within UK teams during 2022. Luxembourg, Amsterdam, Dublin, and Madrid have been the focus for a lot of firms.
We are seeing dedicated financial crime hires within the private equity sector, particularly at the VP and Director levels, this has stemmed from firms now needing an expert internally to answer queries or deal with outsourced providers or with firms wanting to create global financial crime programs.
As regulatory requirements become more complex and stringent, the demand for compliance professionals in London continues to remain. Those professionals with regulatory policies, horizon scanning, and monitoring in demand.
As market volatility & economic disruptions continue to take place firms have been looking for where they can de-risk and look to diversify their investment strategies. This has meant many firms have needed to improve their infrastructure to support this and are investing in new technology/data analytics to improve their compliance processes. This includes the use of machine learning and artificial intelligence (AI) to automate compliance tasks and enhance risk management.
Bonuses across the alternatives space have either been down this year or if you were lucky on par with previous years, which for a lot of individuals if the firm has done well has caused frustrations.
Private Equity | Base Salary | Bonus
Global CCO | £250-£300k | 40-80%
UK Head of Compliance | £160-£220k | 40-60%
Deputy Head of Compliance | £110-£140k | 20-30%
Compliance / Manager / Officer | £80K-£100k | 20-30%
Compliance / Associate | £60-£75k | 10-20%
Compliance / Analyst | £45K-£55k | 15-20%
Hedge Funds | Base Salary | Bonus
Global CCO | £250-£450k | 40-100%
UK Head of Compliance | £170-£250k | 40-100%
Deputy Head of Compliance | £130-£160k | 30-70%
Compliance / Manager / Officer | £90-£120k | 30-70%
Compliance / Associate | £65K-£80k | 20-30%
Compliance / Analyst | £45-£60k | 10-20%
Traditional Asset Management
The effects of the economic volatility in the UK, anticipated recession, and external political factors in Europe are a cause for concern in the market resulting in a moderate approach to hiring.
The Asset Management industry has undergone significant changes due to increasing regulatory scrutiny and technological advancements. As a result, there has been a growing demand for skilled compliance professionals who can help asset management firms navigate these changes and stay ahead of the curve, particularly in the areas of ESG, SDR, and those with Retail Funds and Consumer duty expertise are all in demand.
Despite a slight slowdown in job volumes, the market for compliance professionals remains highly competitive, and there is a shortage of skilled generalist Compliance Officers with generalist regulatory compliance experience with investment compliance knowledge at the AVP and VP levels. This has led to an increase in salaries for compliance professionals, especially those with specific expertise in areas such as investment guidelines, market abuse, and surveillance.
The outlook for Q2 and beyond is there will be a strong focus on sustainability with new SDR regulations, those individuals with ESG exposure will be sought after and will continue to grow momentum. With the consumer duty deadlines approaching we are seeing an increase in demand for Compliance Officers with this skill set.
There has been a focus on retention strategies for many firms to retain their top talent. Salary increases have been moderate across the industry. At the Associate level we are seeing candidates move for above-inflation pay increases c. 15-25% similarly for Officer and Manager levels. The levels of attrition at the CCO, Head of Compliance (SMF-level) were low during Q1. However, we expect this to increase post-bonus(s) heading into Q2.
Asset / Investment Management | Base Salary | Bonus
Global Head of Compliance | £200-£300k | 40-80%
UK Head of Compliance | £160-£220k | 40-60%
Deputy Head of Compliance | £130-£180k | 20-30%
Compliance / Manager / Officer | £90-£120k | 20-30%
Compliance / Associate | £70-£90k | 10-20%
Compliance / Analyst | £50-£60k | 10-20%