Danos Group
11 May

There is no denying that the country is split over Brexit and as our impending departure draws closer the costs and benefits of the economic impact are widely anticipated.

When it comes to the financial services, the movement of roles into the EU that we have seen could cause concern for the UK market but we are pleased to report a reversal of the initial Brexit trend. In fact companies are strategically building out their London offices. Here are eight reasons why:

1.      Small EU presence is enough

Businesses have worked out that only minimal on the ground presence is needed to retain an EU passport. Companies have rightly recruited into growing hubs such as Frankfurt, Dublin, Luxembourg and Paris but they only need a foothold, not a complete operational shift.

2.      The top talent is in the UK

Advances in technology and communication have meant that it is easy for global corporations to work as part of international teams.

Companies can hire based on talent alone, unencumbered by location and the infrastructure and talent pool quite simply are strongest in London.

With more recruitment in other countries levelling out the salary field, London is no longer seen as the expensive option, giving it an extra boost.

3.      London is still the continent’s financial hub

The underling global economy infrastructure is still in London.

BNP Paribas, ‘the bank for a changing world’ have recently announced the launch of corporate banking in the UK showing confidence they can gain from a move on the UK market.

We’re even seeing moves to London from places like Russia from companies seeking a stable political base.

4.      The global economy is strong

The global economy is good. There has been greater transactional demand for some time and with more business being done, more infrastructure is needed.

5.      Our regulatory scrutiny gives companies credibility

All eyes will be on the UK’s regulation when we come out of the EU so it will have to remain as stringent if not more so to hold out to scrutiny. Companies operating within the transparent and consistent framework can promote trust.

6.      Brexit has created jobs

Companies have rightly been preparing for potential impact in regulatory change which has created workload and consequently, hiring.

7.      The weak pound makes the UK attractive

Businesses that receive revenue from outside of the UK have found themselves in a more appealing position due to the weakening of the pound. The long view is that if more business is generated from the attraction of cheaper currency, more sterling is still brought home.

8.      Optimism

Some financial institutions, in particular smaller ones see Brexit as an opportunity to be more efficient with their compliance efforts. Their hope is that more tailored regulation will mean efforts won’t be forced on irrelevant policies and be relative to size and risk. This saving will allow them to price themselves more competitively against bigger players and ultimately remain in business.

Whatever happens, Compliance, Legal and Risk functions are going to be at the forefront of adapting to Brexit change. If you would like our support in getting the right team in place please get in touch.

Tel: +44 (0) 20 3889 5758

Mobile: +44 (0) 7989 969 482

Email: jlimburn@danosassociates.com

10 Apr

Last week saw the deadline for the first Gender Pay Gap (GPG) reporting. The new UK legislation required employers with 250+ employees to disclose the pay gap between their male and female employees and the results have intensified dispute around this issue.

The Results

78% of companies have been found to pay men more with women being paid a median hourly rate of 9.7% less on average than their male colleagues. The financial services had the second highest pay gap with a median company pay gap of 22%.

Interestingly, even nine out of 10 of the Times Top 50 Employers for Women (2017) have revealed that on average they pay women less than men.

The Office for National Statistics (ONS) were unable to take into account job demands so while this data does provide useful comparisons, it isn’t able to give validation that men and women are being paid the same for the same work as per the Equal Pay Act, 1970.

Lots of companies are citing having a higher number of males in senior roles skewing their average figures as a reason for their imbalance but this in itself highlights a key issue. It shows that there are more women in lower paid roles while males dominate the boardroom.

Compliance is Bucking the Trend

This got us thinking and we decided to do some research of our own. At the end of last year we reported that women were ‘leading the way in Compliance’ and despite the financial services’ shortcomings in these results, over 60 percent of our Compliance placements from AVP to Global MD continue to go to women.

Our position also gives us insight into salaries across the market and we pleased to report that there is very little disparity in pay between the sexes in Compliance, far from the 22% of the rest of the industry.

With inspirational women at the helm of major institutions such as Credit Suisse, Goldman Sachs, HSBC, BlackRock and Barclays in Chief Compliance Officer roles, we are sure Compliance will continue to be a stronghold for equality.

A Global Perspective

With offices in London, New York, Hong Kong and Singapore, we can take a global perspective and are pleased to report that the high number of women in Compliance and equal pay extends beyond our borders.

In New York, they’re tackling the GPG with their Salary Disclosure Ban. This forces salaries to be based on the role alone and for women, protects them from any previous inequality or impact from taking time out to have a family. Many of our top clients in the US have had robust diversity programmes for a few years now and invite us, as the people responsible for recruiting their teams to attend ‘diversity awareness’ meetings which is something we wholeheartedly support.

Making a Difference

A company’s GPG has to be published on their own website as well as gov.co.uk. This widespread availability has led to difficult questions from employees, poses potential issues for future hiring and crucially can influence customer choice so it has been a real motivating force to see a greater change.

We’ve seen companies set targets, run programmes to attract female talent and take steps to ensure there is no bias in the recruitment process but the real challenge is ensuring women can remain in successful and balanced careers. We are supporting our clients who are having open discussions about the barriers to this and creating paths to an inclusive culture for everyone.

We’re seeing moves within banks towards more flexible working, job-shares and working from home already and we know the world is watching. Smart companies realise that equality in the workplace isn’t just about being fair. There are a huge number of talented women in the marketplace and studies have proven that diverse working groups are more successful to which there is a real commercial benefit.

We have a very clear view of the success that comes from matching the person to the right role and this is based purely on talent, experience and fit. If you would like support in strengthening your team with a recruitment specialist that has an unparalleled network of talent, please get in touch.

+44 (0) 20 7371 8332 dspearman@danosassociates.com

03 Apr

Alongside Compliance, financial crime and anti-money laundering (AML) have been the fastest growing areas in financial services. Financial crime has recently gone through an extensive period of new legislation across investment banks, private banks and asset management but we are hearing from our clients that this is set to change.

There will be less new legislation and more focus on how effectively it is being implemented.

Regulators are going to be rigorous in their efforts to ensure everyone is adopting strong Anti-Financial Crime (AFC) controls, putting personal liability at stake.

The knock on effect has meant that firms are:

Getting more ’tec’ focused

Responses to financial crime have to evolve with the progressively complex and sophisticated attacks and this relies on ever advancing technological solutions. Firms are striving to get the most efficient technology in place as a means of managing the huge costs of fighting financial crime. Transaction monitoring and data analytics are key areas set to benefit from technological development.

Fin Tech companies have a real opportunity here to use their technology to be part of the solution. As Blockchain gains momentum, the use of digital identity technology and Biometrics could have a real impact on preventing and detecting financial crime.

Utilising data analytics more than ever

As technology expands rapidly across the financial services, it brings with it more data and more opportunity to find answers within it.

The emergence of data lakes also gives analysts further scope for data based detection and prevention of financial crime.

Adopting a more sophisticated use of Artificial Intelligence

Machine learning techniques are being applied to anti-fraud models and surveillance is ramping up with more sophisticated voice surveillance and trade monitoring to protect against market abuse, anti-bribery, anti-fraud and corruption controls.

Being more collaborative across the industry

Onus has spread beyond banking, looking to insurance, asset management and private wealth management to play significant roles in a conjoined effort against financial crime. The Joint Money Laundering Steering Group (JMLSG) introduced last year will support sharing best practice across all of the financial services.

Honing in on specialists

We’re seeing an upsurge in clients moving away from generalist roles and looking for dedicated financial crime and AML subject matter experts (SMEs).

Understanding this shift and the impact it has on a team’s requirements is where a company with Danos Associates’ expertise and unparalleled network of financial crime professionals can really add value.

If you’re looking to enhance your financial crime programme by bringing in the right skill-sets and experience, Danos Asscociates can deliver on both a permanent and consultancy basis. To discuss your hiring needs please give me a call.

+44 (0) 20 7371 8332 dspearman@danosassociates.com

16 Mar

The talent pool is changing and it is effecting hiring

A late Chinese New Year marked a delayed movement on headcount (that is still very much there) and the more strategic approach to hiring we have observed has seen employers take more time to consider their requirements.

The last 6-7 years in particular has seen so much growth in Compliance and Financial Crime that we reached a critical mass in the talent pool. Now in 2018, the transferable skills of the people originally placed into these sectors have developed into 6-7 years of directly relevant experience.

This means employers can properly assess their team’s structure and make sure they’re balancing out abilities when looking to fulfil specific gaps or needs because specialist competencies now exist. The talent pool is bigger and employers have options but we are not yet in a place of being spoilt for choice.

We have seen increases in demand for:

·      Technology based Regulatory Compliance

·      AML and Surveillance Monitoring

·      Anti-bribery, Corruption and Fraud

An area of growth is for those with a technical compliance background. Big data and systems requirements brought on by regulatory pressures create a greater need for tangible assets that were once satisfied by advisory, product compliance roles. Regulators want to see traceable policies and procedures with testing controls from technology and surveillance rather than rely on the spoken word.

An area that remains unaffected by this change in the landscape is hiring at a senior level. The talent pool is developing but these roles require a much greater depth of experience. This is where clients rely on our network and market knowledge to place the right candidates. Our consultative approach and market maps allow us to fully understand the client’s needs and come back to them with what is available in the market place locally, regionally and globally. Our expertise allows us to consider options and points of difference and has seen us have an excellent track record in this field.

If you would like our support in strengthening your team in 2018 with the very best talent, please do get in touch.

T: +(65) 6233 6871 E: cdecarvalho@danosassociates.com