Introduction - CTgoodjobs · 2019-09-09 · are getting an increment of at least 20% on top of their base and a sign-on bonus is becoming more common. This hiring trend is expected

Hong Kong Compliance

Salary Survey & Guide 2019

2009 - 20192009 - 2019

CELEBRATING

10Years

www.aquissearch.com 2Hong Kong Compliance Salary Survey & Guide 2019

The Aquis Search Hong Kong Compliance Salary Survey & Guide 2019 details salary information and recruiting trends in the business sectors we cover. Our information has been researched and collated with the help of our clients and candidates and from our working knowledge of the marketplace. Aquis Search consultants have extensive expertise in their practice area and the information reported is based on telephone interviews with hiring managers, HR professionals and in-house recruiters as well as data extracted from our own database and internal research resources.

As with all reports that detail salary information and trends, we represent the mainstream view and we recognise there will be individual situations that fall outside the data published. This survey is therefore a guide to general movement in the sector. Please contact us for further information or for clarification on any of the compensation trends detailed in this report.

Introduction

CELEBRATING

10 Years

2009 - 2019


Hong Kong’s importance as a regional financial hub is increasing, creating significant compliance hiring demand in the financial services sector. Technology has also played an increasingly important role in shaping how recruitment works and the new skill sets required in this already limited talent pools has made it even more challenging for companies to recruit as compliance professionals are struggling to keep up with the new technology.

Overall, 2018 was another busy year for compliance hiring. Fintech particularly has maintained a high level of activity due to the evolving business needs and new regulations being introduced. Regional banks also stepped up their game due to aggressive business growth in the region.

Private banks and investment bank hiring has been steady over the past 12 months. We have seen mainly replacement-focused positions for mid-senior level advisory roles.

However, we have noticed that on the AML side, there has been an increase in demand from private banks, whilst there had been a reduction in AML headcounts in corporate and investment banks. We have seen more banks terminating their contracts with third-party compliance firms after AML projects are completed.

Fintech: Meeting the Regulatory Challenges

Hong Kong has been steadily making efforts in recent years to become a fintech hub. In such a rapidly developing area, the importance of a clear, reasonable and efficient regulatory body should not be undermined. Financial technology experts are calling for better regulations to help the industry thrive and regulators are consistently tracking these developments to make sure regulation remains effective as new technologies are more widely adopted.

The Hong Kong Monetary Authority ("HKMA"), Insurance Authority (“IA”) and the Securities and Futures Commission

(“SFC”) have each launched regulatory sandboxes to deal with regulatory enquires and handle pilot trails respectively.

SFC: The Dawn of Virtual Assets Regulations

The rapid growth in virtual assets and trading platforms has led to greater scrutiny by securities market regulators worldwide, with a particular focus on the risks associated with investing in virtual assets in a move to enhance investor protection.

The new rules, announced by the SFC will target funds that invest in digital currencies as well as trading platforms on which these virtual currencies are traded. The new regime will ban retail investors from trading virtual currencies with these funds or platform, but will allow professional investors.

Cryptocurrency trading platforms will need to join the so-called “sandbox” under which they can continue to trade while negotiating with the SFC on their licensing requirements. Senior figures within the industry and leading cryptocurrency organisations have welcomed the SFC regulatory sandbox as part of its effort in exploring regulation of platform operators.

As the SFC is using its existing regulatory sandbox to monitor the activities of virtual assets exchanges, candidates with good knowledge in SFC regulations especially in the securities space will continue to be in high demand in the market, as it is anticipated that the SFC will be moving to a tighter and stricter sandbox environment.

HKMA & The New Virtual Banking License

Hong Kong has long been a global leader in banking and finance, and now finds itself braced for the arrival of virtual banks — financial institutions without physical branches where all transactions are online. The HKMA received 29 applications for the first batch of virtual bank licenses, ranging from telecommunications operators and financial technology companies to global banks.

These virtual institutions will largely face the same rules as traditional ones, including stringent capital requirements, leaving them little recourse but to either offer more attractive terms or a much better digital experiences to attract consumers.

Market Overview

we have noticed that on the AML side, there has been an increase in demand in private banks


Traditional banks are not just competing with technology companies for market share, they are also competing for the limited talent pool in this new sector. With the introduction of new and tighter regulations in the wider financial services sector, there has been a growing demand for candidates with expertise in both regulatory compliance and financial crime compliance.

The majority of the candidate pools for such roles are from large traditional financial firms with good retail banking products knowledge, are tech-savvy and also have the ability to think creatively. Candidates normally receive an uplift of 25% - 30% on their base salary and it is not uncommon that senior candidates are also given equity as an incentive to attract them to join new start-up businesses.

As the fintech industry continues to evolve, we are optimistic that they will continue to drive the compliance recruitment in Hong Kong in the next 12 to 24 months.

Large Regional Banks and Chinese Banks

When the large global banks started de-risking after the financial crisis, they off-boarded almost a quarter of their “riskier” clients which were snapped up by large regional banks and the Chinese banks.

As they continue to make a push for business, they are building a robust compliance system. By having the right compliance procedures in place, they will be faced with fewer financial penalties than competitors. The “wait and see” approach to compliance is no longer effective in today’s evolving regulatory and competitive environment.

Over the last 12 months, these banks have invested significantly in compliance technologies as they are seeking new approaches to strengthen their compliance capabilities.

While regional banks continue to navigate digital threats, management teams need to allocate funding and time to developing new operating models, bringing in new tools and technologies and equipping staff with new skills. It is expected that they will continue to deploy new technologies in areas such as technology transformation, intelligent automation, enterprise-wide regulatory technology and also the implementation of new surveillance tools.

Over the last 12 months, regional banks and Chinese banks have been taking senior talent from global financial institutions. These candidates are usually well-equipped with strong tech-compliance skills along with outstanding business acumen in order to build a stronger compliance culture while they are expanding their business. Candidates are getting an increment of at least 20% on top of their base and a sign-on bonus is becoming more common.

This hiring trend is expected to continue as large financial institutions continue to re-evaluate their existing portfolios and they are also more cautious in onboarding new clients. Regional banks and Chinese banks will continue to build a more robust compliance system in order to take on riskier and profitable clients from their rivals.

Private Banking

After a period of consolidation in the industry, the private wealth arena has become relatively stable over the past few months. Rich millennial clients demand round-the-clock investment advice and management via their smartphones and this has again created a new influx of technology jobs in the sector.

In compliance, private banks in Singapore and Hong Kong are not recruiting for business-as-usual roles as they are using new tech such as machine learning, big data and artificial intelligence to digitalise the wealth industry hence improving their previous notoriously slow client compliance operations.

AML continues to be the main focus of hiring in this sector due to tighter regulations imposed by Hong Kong regulators. For instance, the HKMA has worked with the Private Wealth Management Association (PWMA) to develop a Treat Customers Fairly (TCF) charter to further promote customer-centric culture in the private wealth management industry.

AML continues to be the main focus of hiring in this sector due to tighter regulations imposed by Hong Kong regulators.


The PWMA has also enhanced its code of ethics and conduct to elaborate and place emphasis on certain guidelines pertaining to upholding client information confidentiality and the selling of in-house investment products. As a result, compliance costs have soared, and private banking compliance professionals will continue to be in high demand.

We have also seen more banks trying to hire compliance professionals from the regulators themselves. There is also an increase in demand in AML/ KYC professionals due to the business expansions.

Corporate and Investment Banking

Fintech continues to grow, and according to the latest report from Accenture, there was a record-breaking 18% rise in venture capital investment across the world, and 30% in the United States in 2017. It is safe to say that we will see more banks expanding businesses using artificial intelligence (AI) technology to develop new customer-focused interfaces.

Pressure is mounting on the big banks to innovate, while start-ups may struggle with the developing regulations, we often see collaboration between the incumbents and start-ups. One innovation we saw is the evolution of voice banking which is becoming very popular as customers are adjusting to having virtual personal assistants. In Singapore, a leading bank recently partnered with Google to launch their first AI powered voice banking system.

Other than the digital developments, there will be a continued growing divergence in global regulatory standards. For instance, stress tests and capital and liquidity

ratios have increased, and a few changes are still pending on the Volker Rule. Regulatory compliance professionals will need to constantly update and respond to new guidelines.

Regulatory compliance will continue to be a key hiring focus in corporate and investment banks. Banks tend to hire ex-regulators to be the contact point between both parties. They’re also strengthening compliance review/testing teams to enhance internal control. Candidates with internal audit experience will be preferred.

Outlook New technologies developed have created both opportunities and challenges ahead. Compliance recruitment in 2019 will continue to remain buoyant. Fintechs, regional banks and Chinese banks will continue to be the key players with additional hiring in the next 12 months.

To cope with new technologies, we will continue to see new hires in compliance infrastructure, surveillance and compliance audit, and candidates with an IT background will be preferred.

Banks will also need to overcome internal skills gaps by evolving and developing the skill sets of their existing compliance teams. New compliance skill sets such as the ability to retrieve the right data (data quality) and obtaining strategic insights from the data gathered in order to ascertain the risks involved, will be the key to driving technology innovation across most financial industries.

Salary ranges overleaf.


Investment Banking

Area of ComplianceAnnual Salary (HKD)

Analyst(1 - 2 Years)

Associate(3 - 6 Years)

AVP(6 - 9 Years)

VP / D(10 - 14 Years)

ED(15+ Years)

Global Markets Compliance

(FICC / Equities)300,000 - 360,000 420,000 - 560,000 600,000 - 900,000 1.2M - 1.8M 1.8M - 2.2M

IBD / Research Compliance 300,000 - 360,000 420,000 - 560,000 600,000 - 900,000 1.2M - 1.6M 1.8M - 2.2M

Monitoring & Surveillance 240,000 - 300,000 360,000 - 480,000 500,000 - 800,000 1M - 1.4M 1.6M - 2M

Control Room Compliance 300,000 - 360,000 420,000 - 560,000 600,000 - 900,000 1.2M - 1.8M 1.8M - 2.2M

Registration & Licensing 180,000 - 240,000 300,000 - 360,000 420,000 - 720,000 900,000 - 1.3M 1.5M - 1.7M

Regulatory Affairs 180,000 - 240,000 300,000 - 360,000 420,000 - 900,000 900,000 - 1.3M 1.8M - 2M

AML Advisory 300,000 - 360,000 420,000 - 560,000 600,000 - 900,000 1M - 1.6M 1.6M - 2.2M

AML Transaction Monitoring 180,000 - 240,000 300,000 - 360,000 420,000 - 720,000 900,000 - 1.3M 1.6M - 1.8M

Compliance Monitoring &

Testing180,000 - 240,000 300,000 - 360,000 420,000 - 700,000 900,000 - 1.3M 1.5M - 1.8M

Retail & Corporate Banking




AVP(6 - 9 Years)

VP / D(10 - 14 Years)

ED(15+ Years)

Regulatory Compliance 240,000 - 300,000 360,000 - 540,000 540,000 - 780,000 800,000 - 1.3M 1.5M - 1.8M

AML Compliance 300,000 - 360,000 420,000 - 540,000 540,000 - 840,000 900,000 - 1.3M 1.6M - 1.8M

Compliance Monitoring &

Testing180,000 - 240,000 300,000 - 360,000 420,000 - 780,000 800,000 - 1.2M 1.3M - 1.5M

Fintech


Associate / AVP / VP(3 - 9 Years)

D / ED(10 - 15 Years)

AML Advisory 480,000 - 960,000 1.3M - 1.5M

Regulatory Compliance 480,000 - 960,000 1.3M - 1.5M

Salary Ranges


Asset Management




AVP(6 - 9 Years)

VP / D(10 - 14 Years)

ED(15+ Years)

Business Compliance 240,000 - 300,000 360,000 - 600,000 700,000 - 850,000 1.2M - 1.5M 1.6M - 1.8M

Investment Compliance 240,000 - 300,000 380,000 - 600,000 700,000 - 850,000 1.2M - 1.5M 1.6M - 1.8M

Brokerage


Associate / AVP / VP(3 - 9 Years)

D / ED(10 - 15 Years)

IBD Compliance 480,000 - 960,000 1.3M - 1.8M

General Compliance 480,000 - 960,000 1.3M - 1.8M

Insurance




AVP(6 - 9 Years)

VP / D(10 - 14 Years)

ED(15+ Years)

General Compliance 200,000 - 240,000 360,000 - 480,000 520,000 - 700,000 800,000 - 1.1M 1.2M - 1.5M

Private Banking & Wealth Management




AVP(6 - 9 Years)

VP / D(10 - 14 Years)

ED(15+ Years)

Regulatory Compliance 300,000 - 360,000 420,000 - 600,000 750,000 - 900,000 1.2M - 1.5M 1.6M - 1.8M

AML Compliance 200,000 - 300,000 350,000 - 420,000 600,000 - 750,000 1.0M - 1.4M 1.4M - 1.8M

Investment Suitability N/A 400K - 550K 600K - 800K 1.2M - 1.6M 1.4M - 1.8M

Salary Ranges


Contacts

Gina is a Director in the risk & compliance financial services team based in Hong Kong.

Gina specialises in the recruitment of compliance professionals in functions covering AML and KYC specialists, advisory compliance for equities, fixed income, corporate finance and control room, investment compliance, core compliance, regulatory affairs & licensing and credit, market & operational risk. She has particularly strong networks in investment banking, asset management, consultancy and consumer banking.

Gina has seven years of executive search experience. Prior to her recruitment career she worked for a number of years in Accounting with internationally recognised firms in HK.

Gina has a Bachelor's degree in Accounting & Finance from the University of Hong Kong. She speaks English, Cantonese and Mandarin.

Gina Hui Director

[email protected] OL: +852 2537 0333 / DL: +852 3695 5129

Scott Harrison is a Founder and Chief Executive Office of Aquis Search with overall responsibility for the strategic direction and day to day operations of the business. He leads a team of established senior consultants that deliver recruitment solutions for legal, risk, compliance, finance and accounting, human resources and support functions across APAC. He has established networks and relationships with law firms, financial institutions along with a number of clients across the broader commerce community with a particular focus on accessing leading regional and global legal and HR talent.

Scott is a qualified organisational psychologist and began his career in management consulting before moving into the recruitment industry over 20 years ago, initially in Sydney and since 2003, in Hong Kong. He is passionate about the delivery of leading recruitment solutions and best practice for clients across Asia.

He holds a Bachelor of Arts (Macquarie University) and a Masters in Applied Psychology and was previously admitted to the NSW Board of Psychology.

Scott is an MOM registered EA, registration number: R1112903.

Scott Harrison Managing Partner

[email protected] +852 2537 0333

https://www.linkedin.com/in/gina-hui-cpa-04012532/

https://www.aquissearch.com/consultants/scott-harrison


Contacts

Michelle is an Associate Director in the compliance team based in Hong Kong. She is responsible for the recruitment of compliance professionals in the financial services sector.

She has an established reputation in the Hong Kong market where she began her career working on c-suite executive placements in a boutique search firm, before moving to a global talent solutions provider. She is experienced in placing compliance professionals into investment banks, corporate banks, private banks and PE/ hedge funds and asset management firms across Asia.

Michelle has a Bachelor’s degree in International Hospitality Management from the University of Surrey and speaks fluent English, Cantonese and Mandarin.

Michelle Yau Associate Director

[email protected] OL: +852 2537 0333 / DL: +852 3695 5129

https://www.linkedin.com/in/michelleyau117/


About Aquis Search

Aquis Search is a regional leader for corporate governance and control functions executive search and recruitment services. Our geographical coverage extends beyond our office locations and we handle search assignments in numerous Asian countries.

Our clients are members of a global network of prestigious financial institutions, leading UK & US law firms and many of the largest companies within the Fortune 500. Professional integrity is the key value on which our client relationships are built, and the majority of our business is the result of personal referral. This is testament to the high level of professionalism for which we are known.

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https://www.linkedin.com/company/aquis-search/

www.aquissearch.com

CELEBRATING

10 Years

2009 - 2019

Documents

Introduction - CTgoodjobs · 2019-09-09 · are getting an increment of at least 20% on top of their base and a sign-on bonus is becoming more common. This hiring trend is expected