Investment Banking & Asset Management

ComplianceSalary Survey 2009

PSD

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PSD

01PPSSDD:: AAnn OOvveerrvviieeww

PSD

PSD is an international recruitment services organisation. The Group is listed on the London StockExchange and operates internationally.

Recruiting at all management levels across support functions up to Board level, we deliver innovativerecruitment solutions for the world’s leading organisations.

Our strength lies in our dedicated approach to and expert knowledge of our specialist sectors andfunctional disciplines. Each specialist division of PSD is well established as a market leader within itsspecific field of recruitment.

Functional Disciplines

ComplianceRiskAuditLegalPensions & Investment FinancePurchasing and Supply ChainCustomer ContactMarketing & SalesProperty/Facilities ManagementHuman ResourcesIT & TechnologyOperations

Recruitment Services

Our reputation has been builtupon our ability to deliver highlyeffective recruitment solutions toour client companies. Eachrecruitment consultant is fullytrained in file search, advertisedselection, executive search andcontracting, ensuring that weare in the strongest position torecommend solutions which areappropriate to the individualneeds of our clients.

The skills and experience of ourconsultants and the resourcesand capability of the Groupenable us to handle a widevariety of recruitmentrequirements, from single keyappointments to large scalerecruitment projects, in bothinternational corporations andsmall private businesses.

Global Vision

Our international experienceallows us to handle assignmentsacross the globe with particularfocus upon Europe and AsiaPacific.

Our People

Standing out in the recruitmentmarket is never easy, mostconsultancies tend to offersimilar services. However, atPSD we have a key point ofdifference - the quality of ourpeople.

It is the skills and knowledge ofour consultants and supportstaff that provide clients andcandidates with exceptionalservice. All staff successfullywork within a values basedorganisation.

Commitment to Quality

PSD is committed to the trainingand development of our peopleand to the continuingimprovement in the quality of ourservices. We continue to adhereto the Investors in Peoplestandard and ISO 9001:2000

FTSE4GOOD

PSD is a member ofFTSE4Good and is listed as anAll-Shared Index Constituent.Corporate Social Responsibility(CSR) Standards are becomingincreasingly more prominent in aclient's selection of a supplier.

The CSR standard incorporatescompany policies, managementand reporting on environmental,social issues and stakeholderrelations criteria. This includesareas such as diversity, equalopportunities, health and safety,training and development andemployee relations.

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PSD

Preparation of the Survey

This survey is designed to givecompanies guidance whenconsidering remuneration for theircompliance staff, and also to giveemployees an insight into theirmarket value, based on theirexperience.

The information has been collatedfrom a questionnaire sent outearlier this year to over 2000compliance professionals who areregistered with PSD or with thespecialist compliance websites.

This survey focuses on InvestmentBanking and Asset/FundManagement Compliance and willinclude: Hedge Funds, Stockbrokers, Private Wealth andPrivate Equity organisations.

A survey that focuses on RetailFinancial Services Compliance isavailable, to obtain a copy pleaseemail paul.geist@psdgroup.com

We would like to thank everyonewho has contributed towards thissurvey by providing valuableinformation.

If you have a specific salaryquestion please do contact us.We would be delighted to provideyou with more detailed informationrelating to your sector and level.

PSD in Compliance

Having been established since1991, PSD have been specialisingin compliance recruitment fromthe very beginning. We have seenthe changes in industry broughtabout by an increase in regulationfrom the introduction of theFinancial Services Market Act in2000, to the more recentintroduction of TCF and MiFID,and the on going move towardsprinciples-based regulation.

The Team

We have a team of 8 consultantswho specialise solely incompliance with a nationalcoverage of retail and investmentbanking, fund/asset management,insurance and other regulatedindustries.

Who We Recruit For

We have a strong track recordrecruiting at all levels from juniorCompliance Analysts up toDirectors and Global Heads ofCompliance. We are a preferredsupplier to the majority of themajor players and SME’s in theFinancial Services sector, andhave built our reputation onexcellent customer service tailoredto clients’ and candidates’ needs.

Our Strengths

- Professional experiencedConsultants.

- Strong market presence.- Specialisation within the

investment banking &fund/asset managementcompliance market.

- In depth understanding ofclients’ needs.

- Agreed timescales for delivery.- Over 50% of candidates

referred.- Up to 70% of positions handled

exclusively.- Repeat business on over 70%

of our accounts.- Contingency or retained basis.- Handle permanent contract or

interim assignments.

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PSD

Investment Banking

For the purpose of the survey,Investment Banking refers to sell-side organisations in London, whoare involved in Corporate Finance,M&A, Sales and Trading andPrivate Equity.

One of the major effects of thecredit-crunch on the recruitmentindustry has been the switch froma healthy number of jobopportunities and very fewavailable candidates, to a marketwhere there are now aconsiderably larger amount ofcandidates available for every jobvacancy. This in turn has createda buyers market where employersare able to pick and choose attheir own pace, and be veryspecific about the skill sets andattributes of the person they hire.

With the majority of unemployedcandidates in the market beingopen to considering reductions intheir earnings, means that thereare some highly qualifiedindividuals looking for work. As aresult clients can take advantageof this and hire at a reduced rate.In most instances clients havebeen wary of this, appreciating thefact that when the marketimproves those who haveaccepted lower salaries will eitherinsist on an increase or leave formore salary aligned positions.

For positions which call for a moretargeted approach i.e.Headhunting has become atougher task than ever, as manypeople have witnessed friendsand colleagues being maderedundant and feel thankful to stillbe in employment.

At PSD, we are fortunateenough to have a healthy clientbase, and an even bettercandidate database. With all ofthe turmoil going on in theFinancial Services markets oflate, if there's a place to bewithin the Financial Servicesworld then Compliance has tobe one of the more sustainablemarkets. We are hopeful that2009 will be a fruitful year for us,as new rules and regulations areundoubtedly about to bereleased by the FSA which inturn will have a positive effect onthe regulated sectors.

Bonus & Benefits

2008 bonuses for the majority ofsell-side organisations havebeen dramatically reduced,although surprisingly a numberof front office workers have stillreceived a fair bonus for theirefforts during 2008.

Middle and back-office functionsseem to have been affected themost, with a large proportionreceiving little or no bonus for2008.

There are some InvestmentBanks which have honoured2008 bonuses, but as a wholethe bonus being paid in 2009 isa shadow of what wasexpected.

Historically people have beenmotivated via basic salary andpotential bonus, eitherdiscretionary or guaranteed, butas the market has tightened andthe level of salaries stabilisedthis has led to benefitsbecoming increasingly moreimportant to anyonecontemplating an offer.

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PSD

Asset/InvestmentManagement

For the purpose of this surveyAsset/Investment Managementrefers to buy side organisations inLondon and the North of Englandinvolved in institutional or privateclient investment via assets orfunds. This includes HedgeFunds, Stockbrokers and WealthManagers.

Businesses in the Asset/Investment Management sectorswere looking set for anotherexceptional year of growth during2008, however by the end of theyear it was evident that thesesectors were more likely to shrinkand be consolidated. Similar tothe Investment Banking marketthe credit crunch has had aprofound impact on mostbusinesses across this field.

The economic situation will alwaysdictate the need for recruitmentactivity within any organisation,however, whilst both these sectorshave undoubtedly sufferedconsiderably over the last 12months, there still remains acontinuous flow of recruitment.

From a compliance perspectivethe Investment Management andReal Estate sectors have beenincreasingly shaped by a wave ofnew regulations in areas rangingfrom governance to financialreporting and continues to do somoving into 2009.

Although redundancies havegradually found their way into theCompliance field, businesses

continue to feel the force of theregulators which has in turnrequired Compliance to remain acritical area. There is therefore anadditional need to have thehighest calibre Complianceprofessionals on board.

Whilst Hedge Funds have seen adecrease in numbers over the last12 months, it has been theStockbrokers and WealthManagement businesses whichare maintaining the most amountof stability in the market.

Specifically within WealthManagement, Private Investorscontinue to become moresophisticated through offeringinnovative and morecomprehensive solutions in orderto compete in the market. As aresult we have seen an increase inbringing the best Compliancespecialists on board to overseethe new variety of products beingused.

Again similar to the InvestmentBanking world, TreatingCustomers Fairly (TCF) and Anti-Money Laundering (AML) havehad the most amount of focusduring 2008 and will no doubtcontinue to play a big part withWealth Managers throughout2009.

Bonus & Benefits

Bonus and benefits are often seenas a crucial element forcandidates considering positionsin the Banking sector, in particularat the Senior end and 2008 wascertainly no different.

Although benefits have remainedat a similar level throughout 2008,bonuses during this time for manybuy-side organisations have beenimpacted substantially as a resultof the economic downturn. In thesame way employers have frozensalaries or even cut pay this yearto cope with the recession.

The problem is that employeesbelieve the grass is greenerelsewhere and have thereforestarted to consider otheropportunities within the buy-sidemarket - the truth is that othercompanies are experiencing verymuch the same financial problemsand there are in fact feworganisations who are in thecomfortable position of handingout competitive bonuses.

In respect of Complianceprofessionals, given the lack ofincrease on basic salaries and thesmall amounts in the bonus pot,benefits are having more of aprofound impact on thoseconsidering suitable opportunities.Without the guaranteed ordiscretionary bonus over the last12 months, pension contributionsand other benefits such ashealthcare, holiday allowance arebecoming more critical in thedecision making process.

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PSD

Investment Banking

Compliance Officer(AML/Monitoring)

Monitoring is the most active areaof Compliance this year for PSD,with KYC and AML still being akey part of compliance andremains a manageable cost interms of salary.

Although the majority of PSD'ssell-side clients have not activelybeen developing this side of theirbusiness, there have been anumber of positions which havebecome available for bothpermanent and contractingmonitoring staff in 2009. This areain particular tends to have a largeamount of contractors to assiston specific projects or completeshort term assignments.

Compliance Advisor

This is a senior post within anysell-side organisation and onewhich is typically taken on afterspending several years within thecompliance field.

This position requires theindividual to have a goodunderstanding of the FSA rulesand regulations, in which they aretasked with advising the desk onwhether a trade can be legallyexecuted.

With the volume of deals beingreduced there have been lessrecruitment activity for complianceadvisory positions than previouslyexperienced in a healthy market.However, PSD has experiencedan increase in demand forEquities and Fixed Incomespecialists.

Compliance Manager/Head ofCompliance/MLRO (CF10/11)

The level of breadth andresponsibility for this positionvaries between one InvestmentBank to another, and typicallydepends on a number of factorssuch as size and structure of theorganisation in question.

There have been fewer Heads ofCompliance and MLRO positionson the sell-side for the beginningof 2009. A large number oforganisations have opted to movethe Head of Compliance post,otherwise referred to as theCF10, to the group ororganisations’ Financial Director inorder to reduce costs.

Candidates have also beenreluctant to move due to jobsecurity, although we expect thisto improve towards the end of2009 as more confidence isrestored to the financial servicesindustry.

The MLRO, otherwise known asCF11 has also been quiet on therecruitment activity front.

Financial Crime still remains a keypart of any financial servicesorganisation and being such acritical position requires specialistknowledge and expertise. Againin some cases we have seen theMoney Laundering ReportingOfficer merge into the Head ofCompliance position.

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PSD

Asset/InvestmentManagement

Compliance Officer(AML/Monitoring)

This area typically consists ofgraduate type professionals orthose with between 1-3 yearsexperience within Compliance.There has been a reducedamount of recruitment at this leveldue to organisations requiringcandidates with previousexperience. This is mainly due toadditional time constraints inproviding the adequate trainingfor junior staff.

However, within smallerorganisations there does continueto be the need for junior staff toundertake the core compliancetasks ie PA Dealing, FinancialPromotions, Approved Persons,Watch/Restricted Lists. Salarieshave remained the same andbonuses continue to suffer giventhe current market conditions.

Compliance Advisor

An experienced complianceprofessional typically with fiveyears plus specialist productknowledge. Candidates will havean in-depth understanding of FSArules associated with thedevelopment, marketing,distribution and selling of theseproducts.

Whilst this role will entail elementsof core compliance, the majoritywill encompass advising onparticular products which arerelevant to that specific business.There has been less recruitmentat this level during 2008 due toorganisations looking to keep thehighest calibre of ProductSpecialists on board.

Although perhaps fewer of themnow, Product Specialists continueto be the most sought after typeof compliance professional in themarket and this can often lead todemands for higher salaries.Bonuses are consistent with otherareas and have suffered in light ofthe economic climate.

Compliance Manager/Head of Compliance/MLRO(CF10/11)

The content and responsibility ofthis role will vary depending onthe size and internal structure ofthe business. The CF10/CF11responsibilities will either be withthe Head of Compliance/Compliance Manager oralternatively with the CEO/FinanceDirector.

The position will normallyencompass oversight of thecompliance team and althoughthey will be responsible for theday-to-day running of the corecompliance function, much of thiswill be delegated to the juniormembers of the team. The mainarea of their focus will be onassessing the risk controlframework from a higher strategiclevel.

There are historically always feweropportunities at this level in themarket and 2008 was nodifferent. It can often be the casethat when a Head of Complianceleaves, the organisation looksinternally to promote and thenrecruit at the lower level.

As for remuneration, with themajority of organisationswithdrawing most bonuses andbasic salaries remaining static, itseems the only way to achieveany potential increase is toconsider a career move.

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PSD

Compliance Assistant/Analyst

Compliance Monitoring

Compliance Advisory

Compliance Manager

25-3030-35

30-4035-50

35-5040-65

45-6055-75

Head of Compliance/MLRO 65-85

70-100

London/ South EastNorth England

Compliance Assistant/Analyst

Compliance Monitoring

Control Room

Compliance ProductSpecialist/Advisory

30-35

35-55

40-50

50-80

Head of Monitoring/Advisory/Control Room 70-90

MLRO 70-110

Head of Compliance 100-130

Global Head ofCompliance 120-150

London/ South East

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Compliance Assistant

ComplianceMonitoring/Advisory

Compliance Manager

MLRO

30-35

40-60

50-80

70-90

Head of Compliance 90-120

London/ South East

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Compliance Assistant

ComplianceMonitoring/Advisory

Compliance Manager

MLRO

25-3025-35

28-3630-55

40-5550-75

65-8570-90

Head of Compliance 75-11090-120

London/ South EastNorth England

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Compliance Assistant

ComplianceMonitoring/Advisory

Compliance Manager

MLRO

20-3030-40

25-4040-65

40-5560-70

60-7565-85

Head of Compliance 75-10080-110

London/ South EastNorth England

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PSD

SouthStuart VinesSenior Consultant28 Essex StreetLondonWC2R 3AT

Direct Line: 020 7970 9639Email: stuart.vines@psdgroup.com

NorthRichard AbelsonDirector2nd Floor, Abbey House74 Mosley StreetManchesterM2 3LWDirect Line: 0161 234 0392Email: richard.abelson@psdgroup.com

Edward MansonConsultant28 Essex StreetLondonWC2R 3AT

Direct Line: 020 7970 9759Email: edward.manson@psdgroup.com

We hope that this information has been of benefit to you. Should you require more detailedinformation or if there is a particular recruitment need with which we can help, please do nothesitate to contact us.

Your views are important to us and we would be pleased to receive your feedback on this survey.