Asset management firms are updating their hiring practices to better meet mounting pressure from regulators, PwC has found.
A global survey of chief compliance officers (CCO) conducted by the consultancy firm found staff retention was a problem for 66 per cent of respondents, and was driving up the cost of hiring compliance staff, with half of respondents adding their compliance budgets are at peak already.
PwC said “changing business models, regulatory scrutiny and cost cutting” were all driving changes in asset management firms’ hiring practices, noting that 33 per cent of these firms were hiring compliance staff from the sell-side to better meet new regulatory constraints.
“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,” the firm said.
PwC said increasing pressure from both global and local regulators has led to management firms “further centralising” their compliance teams to make them more efficient and consistent.
“The UK is a good example, with the ongoing Financial Conduct Authority market study forcing firms to re-evaluate their business models as a focus on products and pricing becomes more prominent,” the firm said.
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