Asset managers’ move to restrict compliance budgets drives CCOs to sell-side recruiting

Published at 09:28 AM on 20 December 2016

PwC’s 2016 survey of global Chief Compliance Officers (CCOs) shows changing business models, regulatory scrutiny and cost cutting are impacting the hiring habits of asset management firms.

  • 33% of survey respondents are hiring compliance staff from the sell-side
  • 66% say staff retention is a problem and continues to drive up the cost of hiring compliance staff
  • 50% of respondents say their compliance budgets have reached a peak

The survey shows asset managers further centralising their global compliance functions in order to bring consistency and efficiency in the face of increasing pressure from both local and global regulators.

The UK is a good example, with the ongoing FCA market study forcing firms to re-evaluate their business models as a focus on products and pricing becomes more prominent.

The sector has seen increasing compliance budgets since the financial crisis but half of the CCOs interviewed by PwC expect their budgets to plateau, reflecting increasing cost pressures in the industry.

As regulators deal with MiFID II and contingency planning for Brexit alongside a shifting focus to providing value for the customer, this stalling in budget means compliance functions are re-evaluating the skillsets they need.

As a result, one third of the CCOs surveyed by PwC say they are hiring compliance staff from the sell-side who they feel are better able to challenge and oversee the necessary changes in the business

Amanda Rowland, asset management regulation partner at PwC, said:

“We continue to see global compliance functions evolve in response to ever increasing regulatory demands.

" These demands, coupled with the current cost pressure in the sector mean we are likely to see ever greater focus on strategic and innovative change to the way global compliance functions operate in the future.”

Ends.

Notes for editors.

  1. PwC surveyed Chief Compliance Officers from 14 global asset managers with a total of £6.5 trillion assets under management.
  1. Amanda Rowland is available for interview. Please contact Ellie Raven on raven@pwc.com or +44 (0) 207 804 3663.

About PwC

At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 157 countries with more than 223,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.

PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.

©2016 PwC. All rights reserved.

Ends.


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About PwC

At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 157 countries with more than 208,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.

PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. © 2016 PwC. All rights reserved

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