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Compliance Recruitment Market Booms in UK Financial Services Industry

The financial services sector has witnessed a significant surge in compliance recruitment activity, driven by the implementation of RegTech and the growing importance of ESG (Environmental, Social, and Governance) considerations. According to recent research, risk and compliance vacancies in banking and financial services are expected to rise by 61% across the UK by the end of 2021 compared to pre-pandemic levels.

Talent Shortage Sparks Salary Increase

The candidate-led market has led to a substantial increase in salaries, as firms compete for top talent. With the demand for compliance professionals outpacing supply, financial services companies are offering lucrative packages to attract and retain the best candidates. The trend is expected to continue into 2022, with firms willing to go to great lengths to secure the skills they need.

RegTech Revolutionizes Compliance

The COVID-19 pandemic has accelerated the adoption of RegTech (Regulatory Technology) in financial services, enabling firms to automate compliance checks and enhance operational risk programs. The implementation of RegTech has also led to a shift in the types of skills required for compliance roles, with hiring managers seeking candidates with strong technical expertise.

ESG Takes Center Stage

The introduction of the EU’s Sustainable Finance Directive Regulation (SFDR) has highlighted the importance of ESG considerations in financial services. Compliance professionals are now expected to assess social accountability and risk governance, driving a growing interest in ESG training and certifications.

Diversity and Inclusion Gains Momentum

Achieving gender equality is well underway in the legal and compliance sectors within financial services in London, with 51% of the sector currently occupied by women. The focus on diversity and inclusion has also led to an increased awareness of the need for diverse candidate shortlists, reflecting the broader population.

Looking Ahead

The competition for compliance recruitment and retention is expected to continue into early 2022. While the market may return to normal levels over the next few years, traditional firms such as hedge funds will face challenges battling for talent with innovative fintechs and crypto companies.