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The MiFID hangover - Financial Services Market Update 2018

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Kirsty McIntyre and Jamie Allen Investment Management, Financial Services, Technology...

2018 has seen a huge continuing demand for both regulatory change professionals and technologists, across both the permanent and contract markets.

The MiFID Hangover

There is no surprise that regulatory programmes continue to dominate buy-side hiring plans. The ‘MiFID deadline’ was pretty much non-existent with contractors being extended and new contractors being sought after to deal with the aftermath and completion of PRIPPS, Cost & Charges, Best Execution and so on. GDPR saw a huge demand in contractors out of industry due to the increase in day rates.

We have seen an increase in demand for individuals with front office experience, for example global systems and platform implementations. This is in stark contrast to this time last year when most front office projects were being shelved for regulatory requirements.

Technology is leading the change, followed by individuals who are able to manage the change in an ever-increasing agile environment. With the need to cut costs always on people’s minds, we have seen an increase in demand for the ‘Technical Business Analyst’ - an indivudal who can develop and deliver change across the business.

The EMEA market remains a complex one for our American HQ clients due to the nature of regulation and jurisdictions from an investment perspective. This has led firms to recruit heavily in technology and change teams to deal with more bespoke requirements.

With many traditional buy-side firms feeling out of touch with their clients, digital transformations have been kicked-off. New website design and the creation of new client portals give clients better access to their funds performance, allowing for a more efficient and transparent relationship.

Upcoming Trends for the rest of 2018

Brexit

  • With insurance companies well on their way with their Brexit programmes and ramping up their hiring it is starting to drip feed into Asset Management.
  • There has been a lot of focus around Brexit within investment banks, however over the last decade Luxembourg and Ireland have become leaders in the EU for a funds base with investment decisions usually being made in London, Frankfurt and elsewhere.
  • We expect to see a high demand in Brexit roles right through to the end of the year. Will the hiring needs change as they agree with the regulators, and will more IT and operational candidates become hot demand?

What clients are looking at around Brexit;

  • What kind of people will they hire? Some of our clients have started to look at going down the consultancy route but what impact will this have on budgets?
  • Will they have to hire more staff in Europe and what effect will this have on the UK teams? Some of the UK’s largest Asset Managers are to announce they plan to expand their hubs in Luxembourg and Dublin.
  • Will Brexit create any future Mergers and Acquisitions?
Other 2018 Market Updates: