Overview
The change and technology recruitment market during 2019 has been driven by firms focusing on streamlining front line business architecture and improving existing technology infrastructure to deliver efficiencies and cost savings. 2019 has seen ongoing work on key regulatory reforms namely MIFID II (Cost & Charges), SMCR (9th Dec19) and enhancing the pre/post regulatory reporting framework to meet ongoing regulatory reporting obligations. We have seen several project hires to deliver business analysis on firm’s existing reporting control framework, reviewing data sources and working with third party vendors to enhance regulatory reporting production and the operating model.
Firms have continued to adjust their Brexit planning given the political stalemate to deliver a Brexit deal twice; on 29th March and 31st October 2019. A further Brexit extension has resulted in adding to further uncertainty twinned with wider market challenges around investor confidence, subdued equity markets, and Assets Under Management (AUM) dropping by 3% across the top 500 firms. This has somewhat been offset and countered by the growing appetite for Environmental, Social and Governance (ESG) Investments. ESG mandates growing substantially by 23.3% and widespread business initiatives in flight to improve ESG product offering to clients, technology solutions and CRM portals for marketing/distribution purposes. We have seen increased hiring to support improvements across ESG operational and technology infrastructure to account for corporate events around ESG investments and improving product offering for marketing and distribution purposes.
Key Hiring Areas
A key focus area has been the ongoing optimization of the current regulatory reporting investment operations model and technology architecture. Within Investment Operations, firms have looked to hire Business Analysts to identifying gaps in the current reporting processes that can be optimized via new fintech regulatory solutions; namely Kaizen Reporting, UnaVista, AxiomSL and DTCC. To provide third party quality assurance checking, data analysis and block chain technology. Firms have increased sponsorship and funding for Robotic Processes Automation (RPA) initiatives within the Buy Side. Demand for Regulatory BA’s with direct experience reviewing regulatory reporting obligations pertaining to MIFID II, EMIR, CFTC, AIFMD and SFTR (April 2020).
Several Funds have continued implementing vendor-based Portfolio Management Systems (PMS) / Order Management Systems (OMS) to provide front to back investment and risk management solutions. Clients who have implemented, for example the BlackRock Aladdin / Charles River platform to help manage assets, liabilities, debt and derivatives have seen the need to build in-house teams post implementation. Technology hires to provide technical support and ongoing customization across the PMS/OMS solutions; whilst reducing the reliance on vendors like BlackRock Solutions (BRS) to provide 1st line application support. Along with initiatives to help implement further plug-ins and enhancements. We have seen several institutional funds implementing BRS Aladdin platform, several clients have continued to hire Change and Technology specialist across Charles River IMS, thinkFolio, SimCorp, Bloomberg AIM,
Finastra (Misys FusionInvest), SS&C and Markit EDM solutions.
Demand for Buy Side Data professionals with Investment Management experience has increased significantly.
Clients are moving ahead with building Enterprise Data Management teams to understanding data flows across the business, improve data repositories and warehouse solutions. Several funds have moved forward with the implementation of EDM Markit solution and we have seen direct increase in demand and requirements for Market Data Implementation BA’s and SQL Developers to support the implementation phase. We have seen an acute shortage of technical developers with experience across SQL Scripting, twinned with Investment product knowledge and object orientated programming languages in C++, C# and Python.
Clients are openly looking for candidates with hybrid skill set and programming competency given the limited number of resources available in current teams and reduce time to deliver and dependency on technology development teams.
Technology demand for Developers with experience within Cloud Migration projects has been significant throughout the year. Clients are openly investing in MS Azure and AWS Cloud Technologies to improve existing software used for infrastructure technology solutions. Investment in developing risk analytics solutions for better pricing and valuations has been a key demand area and we continue to see growing demand for risk and quantitative developers with expertise in Python, C++, C# and R.
Outlook for 2020
We expect many clients to continue to push forward with optimization initiatives across the business and streamline technology architecture.
Firms have progressed on regulatory deliverables for 2019 including Senior Managers & Certification Regime (SMCR) due on the 9th Dec 2019. The Alternative Investment Fund Management Directive (AIFMD) regulatory framework covering the “alternative” asset management and hedge funds space will be busy.
Further reviews in UCITS and rules on mutual funds resulting in tighter regulatory rules will result in further remediation initiatives. Clients will look to increase hires to meet pre/post regulatory reporting requirements covering FCA Gabriel submissions and European Securities and Markets Authority (ESMA), Securities Financing Transaction Regulation (SFTR). With go-live phase to begin 12mths before expected April 2020 delivery for Investment and Insurance firms. Projects around SFTR transaction reporting, disclosure obligations and collateral reuse obligations will act as key sponsor for hiring change and technology professionals.
Finally, the Asset Management Market Study for UK Asset Managers and Solvency II directive will require asset managers to make further progress on data quality, governance and disclosures. Well prepared asset managers that offer Solvency II adapted products and reporting will gain a competitive advantage and influence firms to secure budgets to invest in improving data quality, governance and disclosure reporting. Compensation
We have seen daily rates for interim change professionals reduce and firms looking to substitute in favor of permanent hires along with upcoming IR35 changes. In contrast technology professionals with expertise across specific PMS/OMS platforms twinned with the ability to develop in object orientated programming languages have been in heavy demand and short supply. Buy Side Change & Technology professionals with hybrid business, technology and regulatory knowledge can expect to be in demand for H1 in 2020.
Investment Management & Regulatory Change
**below figures exclude bonus and benefits and only index base salary only;
Role Perm (Per Annum) Contract (Rate Per Day)
Head of Change £120k to £150k £1000 to £1250
Programme Manager £100k to £120k £850 to £1000
Project Manager £85k to £100k £700 to £850
Business Analyst £60k to £80k £450 to £650
PMO £45k to £65k £300 to £450
Technology – Infrastructure & Development
Role Perm (Per Annum) Contract (Rate Per Day)
CTO £100k to £140k £800 to £1000
Head of Development £85k to £100k £700 to £800
Front End Developer £60k to £80k £500 to £650
Full Stack Developer £50k to £65k £400 to £500
DevOps Engineer £55k to £70k £500 to £650
