Regulation and compliance will be the largest drivers of financial services recruitment over the next year in the UK, according to a major survey of the sector that also reveals fund managers think bonus caps willhinder their business.
Banks will be the major recruiters, with 62% saying regulatory compliance is causing them to increase headcounts, the quarterly CBI/PwC Financial Services Survey finds.
Of those firms surveyed, 32% highlight regulatory compliance as the main reason for recruitment.
Overall, though, the drivers of recruitment activity are relatively broad based, with 24% saying a shift in business strategy is behind hiring; 22% highlight a combination of regulatory compliance and changes in strategy; and 23% cite an increase in demand for services.
Life insurers, for example, are taking on staff more in response to a change in business strategy (84%).
The survey’s findings about asset managers reveal that they believe bonus caps will make staffing costs more rigid.
Paula Smith, PwC’s UK asset management leader, says: “The proposed EU bonus cap is of particular concern with investment managers expecting the proposal to make staffing costs less flexible and increase difficulty in retaining talent.
Despite the gradually improving clarity around supervisory changes, investment managers think regulation is the biggest obstacle to the sector’s growth.”
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