Changing business models, regulatory scrutiny and cost cutting are impacting the hiring habits of asset management firms.
A study by consultancy PwC found that 66% of respondents said staff retention is a problem and continues to drive up the cost of hiring compliance staff.
Half of the respondents said their compliance budgets have reached a peak while 33% said they are hiring compliance staff from the sell side.
The survey also shows asset managers are centralising their global compliance functions to aid consistency and efficiency amid growing pressure from local and global regulators.
A good example of this regulatory pressure according to PwC is the UK, where the Financial Conduct Authority’s ongoing market study is forcing firms to reevaluate their business models as a focus on products and pricing becomes more prominent.
Since the financial crisis, asset management has seen increasing compliance budgets but half of the chief compliance officers interviewed by PwC expect their budgets to plateau.
Another potential headwind is the upcoming Markets in Financial Instruments Directive (MiFID II) and contingency planning for Brexit. This alongside a shift in focus to providing value for the customer means compliance functions are re-evaluating the skillsets they need.
PwC surveyed chief compliance officers from 14 global asset managers with a total of £6.5 trillion (€7.7 trillion) assets under management.
©2016 funds europe
