Danos Group
09 Oct

Danos Associates has published a 2019 Salary Benchmarking Report for UK Compliance Roles within Asset Management.

In this report you will find salary breakdowns for:

  • Retail
  • Institutional
  • Hedge Funds & Private Equity

The report also highlights some key insights, including:

  • Hiring across Asset Management has been strong in 2019, especially in the Institutional and Alternatives areas.
  • Retail Asset Managers salaries and bonuses have remained broadly flat, this may be in part to the trend for low cost tracker funds.
  • Numerous Head of Compliance positions within Institutional and Alternatives have gone to external candidates, creating knock on opportunities elsewhere.
  • Bonus potential within Alternatives continues to be the most lucrative, but heavily reliant on business performance.

Contact Ed Wacher for your copy of the report and to discuss your search and selection requirements – ewacher@danosassociates.com.

16 Sep

Many companies rely on flexible workers or contractors to provide essential services and expertise, however with the introduction of the IR35 legislation next year you may need to change your contractor strategy and are you ready for change?
 
The Private sector IR35 reform is set for April 2020, where employers hiring contractors will be responsible for determining their IR35 status.

What are the consequences of getting it wrong?

Businesses are likely to be affected in three key areas:

1. Financial penalties

The responsibility of assessing whether the contractor is ‘inside’ the scope of IR35, is down to you, the company hirers and recruiters. 

You will need to identify if an assignment is inside or outside of IR35, and it is likely that there will be some sort of liability for your company if this assessment is wrong.

2. Competition

Contractors will want to work for firms that understand the rules and have taken appropriate steps to ensure compliance. In-demand contractors will only want to work for businesses which understand the legislation and are abiding by the new rules.

3. Increased fees

The cost of using contractors could rise if you don’t address the changes. When setting staffing budgets for next year you will need to take this into consideration.

There has been a significant rise in firms using contractors to help fill short-term needs or finalise projects. Firms see flexible workers as a quick way to hire the specialist skills that they need, without the commitment of permanent resource.

But the legislative changes will open up firms to more risks, it is important that as HR and hiring specialists that you know about the changes to the law and how it will affect your business going forward.

Danos Consulting is here to support you, we can help ensure that you understand the legislation, and that you have the right processes in place. We can support you with:

  • Current contractor auditing
  • Analysis of IR35 and the reforms
  • Detailed guidance on implementation
  • Process and procedures
  • Delivery of cross functional training

Don’t delay contact me today and let’s discuss your IR35 solutions to ensure that you comply.

If you have any further queries or if there is anything else you would like to discuss, please get in touch.

13 Sep

The European Central Bank (ECB) estimates Europe suffers from €1.8 Billion in card fraud each year. Strong Customer Authentication (SCA) is the final aspect of the PSD2 (Revised Payment Service Directive), designed to reduce fraud by implementing a two-factor authentication (2FA) process. The 2FA is going to secure e-payments in the entire European region.

The SCA requires that most of the electronic payments made within the European Economic Area (EEA), be subject to two-factor authentication and the implementation deadline is the 14th September 2019. Under the new rules, if individuals do not approve a transaction combining two elements of authentication, they may not be allowed to complete a purchase.

From speaking with ours clients, we know that not all firms are ready to implement and although the European Banking Authority (EBA) makes it clear that the 14th September 2019 deadline remains, they have acknowledge the concerns of industry and made it possible for local regulators to introduce a ‘grace period’ for compliance with SCA.

In the UK, the Financial Conduct Authority (FCA) has already agreed a plan for a phased implementation of SCA, giving the payments and e-Commerce industry extra time to implement. The FCA’s official communication reads:

“The FCA will not take enforcement action against firms if they do not meet the relevant requirements for SCA from 14th September 2019 in areas covered by the agreed plan, where there is evidence that they have taken the necessary steps to comply with the plan. At the end of the 18-month period, the FCA expects all firms to have made the necessary changes and undertaken the required testing to apply SCA.”

Across Europe regulators are following suit. In France, the local regulator, Banque de France, has also been supportive of a grace period, with peers in Belgium, Cyprus, Germany, Italy and Spain implementing the same, although many authorities are yet to make their positions clear.

Whilst the EBA’s announcement will be welcomed by many, it should not be interpreted as a blanket grace period, on the contrary, it may add even more complexity in respect to intra-EEA cross-border transactions. In such situations how will SCA be applied? This area remains in flux with the industry raising concerns and regulators continuing to clarify their positions.

Maximise these grace periods – for UK companies you now have an extended 18-month period to implement SCA and we are ready to support you. Danos Associates is a leading supplier of Compliance, Financial Crime, Data Protection, Risk and Legal personnel to the Payments and wider financial services industry globally, we are extremely well-placed to find you the best matched candidates. We have a strong track record in Payments recruitment from Associate level to Managing Director. Please contact me to discuss this further or ask any questions.

Paul Geist
Associate Partner, Compliance

Tel: +44 (0) 20 3908 4806
Email: pgeist@danosassociates.com

We offer a comprehensive suite of consulting services from expert analysis through to implementation support. With a pool of highly qualified professionals that can help you fill resourcing gaps in the interim and make sure you have the appropriate skills and backgrounds to boost your department’s capabilities and ensure that you meet the ever-changing Payments industry regulations.

Please contact Katherine to discuss or ask any questions.

Katherine Lord
Associate Partner, Head of Danos Consulting

Tel: + 44 (0) 207 010 1153
Email: klord@danosconsulting.com

11 Sep

Back in the Spring, a group of eight senior electronic trading risk experts, representing some of the bigger investment banks, gathered in London for a round table. The discussion was primarily around the challenges of managing risk in electronic trading.

However, one of the more interesting things to emerge was the realisation that not one of the eight different banks attending that day had employed the same organisational structure for their respective e-trading risk functions.

There was no real template for how best to arrange the risk management teams covering the electronic trading businesses. Some banks place it primarily within operational risk coverage, others have attempted to shoehorn it into a traditional market risk organisational chart, divided by asset class. Whilst these approaches may have some merit, it is also clear from speaking with senior individuals in this space across the market, that they are not without flaws.

It has become increasingly popular to build out stand-alone functions covering all the different risks and e-trading asset classes from one team.  

Algo-trading continues to grow as does the regulation. One of the few hiring trends in risk recruitment which is visible across multiple banks is e-trading risk. There is much competition for candidates across all levels, especially at mid-level. The structure of an e-trading risk function can be a consideration for potential candidates in making a move.

There is a need to manage candidates’ expectations and reservations with structural differences. Some additional common themes have been:

  • Role responsibilities
  • Exposure to multiple disciplines of risk and asset classes
  • Level of influence and visibility relevant to other risk functions
  • Role stability and career opportunities 

In terms of candidate profiles, an understanding of electronic trading and the key problems from a risk management perspective are key. However, there is room for creativity in candidate generation. Traders transitioning into these roles is not uncommon, but we also see individuals from Production Support, Risk Technology and to a lesser extent Quant Risk teams making the move.

As a leading supplier of risk personnel to the financial services industry globally, we are extremely well-placed to find you the best matched candidates. We have a strong track record in Electronic Trading Risk recruitment from Associate level to Managing Director. Please contact me to discuss this further or ask any questions.

03 Sep

As a specialist in quantitative recruitment for financial services, I work across buy-side and sell-side and therefore get good visibility of market movements. Here are my views and what I can see happening in the quantitative market.

Main Trends

Sell-side

In the past few years many banks and consultancies have been offshoring new offices or “centres of excellence” in other European destinations. Cities such as Lisbon, Luxembourg, Warsaw, Krakow, Amsterdam and financial hubs such as Paris and Frankfurt have been very busy in the past two years. This has largely been a cost cutting exercise, but Brexit has also had an impact.

What Brexit has done is potentially increase the number of recruitment opportunities across Europe than originally planned. Most of these European locations now hold the second and third-line operations, with the operations in London being scaled back, but still taking the lead within Quantitative Risk.

Consultancies

With huge uncertainty around the new regulations coming in for a post IR35 era, consultancies have been getting busier, offering their services and ultimately winning more projects. The upcoming IR35 changes have not stopped interim recruitment altogether as most institutions can see past or a way round this, using consultancies has been the easier way to do this.

We have seen recruitment in consultancies remain active and even pick up. Interim consultants are becoming more open to the idea of joining a consultancy, but so have permanent candidates as well. Consultancies are now being able to give candidates the exposure to new interesting projects at many reputable organisations.

Most senior individuals in banks who lead their respective functions will be given a hiring budget and a consultancy budget. There may be hiring freezes and the slowing down in hiring, but the consultancy budget is still available and at times being increased to bring in the expertise needed for particular projects.

Consultancies can give candidates the stakeholder management piece and the experience of liaising with clients, some at a very high level, which is a skill not to be underestimated. A lot of roles within the industry now require the need for this capability and often turn to candidates with consultancy experience as they know this is something they will have.

Summary

I work with a number of leading organisations who are looking for the best quantitative talent across financial services. I am experienced working on opportunities across Europe and the US, and collaborate with my colleagues in our Singapore and Hong Kong offices, who remain active within quantitative recruitment too.

Roles are varied from Counterparty Credit Risk interim opportunities, eFX Quant Development and XVA Model Validation roles at global investment banks, to Quantitative Risk Analysis and Quantitative Research opportunities at leading top tier hedge funds.

There are also multiple consultancy opportunities available such as Credit Risk Modelling with the need to apply machine learning techniques, Derivative Pricing Model Validation and LIBOR transitioning.

For a personal discussion on how I can assist you with your search or just to discuss the market, please do not hesitate to get in touch.

02 Sep

For many lawyers on the junior end of the scale their memories of the last recession in 2008 are fairly abstract, most likely having gained an understanding of those times through what they have read or by proxy. They may not remember the ramifications nor recognise the situation if Brexit has a similar effect.

A lot of people were let go across the City and despite those in top tier law firms believing that staying put was a safe bet, law firms were also hit, and redundancies did happen.

‘Magic Circle firm Allen & Overy cut nearly ten per cent of its workforce worldwide, ditching 47 partners, 200 junior lawyers and 250 support staff.’

A recently published article makes the point that competition with US law firms has driven salary inflation. If the Magic and Silver Circle firms have increased salaries, and their work dries up due to another economic downturn, then sustaining that level across all verticals will become difficult.

Therefore, when you look to make a move, sometimes it’s worth considering more than what you believe to be true, and maybe now is as good a time as any to look at the market.

For those in law firms, remember that some in-house roles can give a diversification to your skill set which can really help your career in the long term, and the experience you gain in-house, on top of a solid technical base, can give you a Unique Selling Point (USP) that will set you apart.

If you are considering your next career move, please do not hesitate to contact us for a confidential discussion, as many of our clients have exciting growth strategies that they feel aren’t going to be affected by Brexit.

For those thinking of hiring, our legal team was launched in 2016 to enhance our exclusive offering to financial services firms with a network of specialist legal professionals. Our team of legal recruitment experts can help you find the right talent to help your team navigate any situation. 

If you would like to find out more, please contact me.