2015 brings us new challenges in the financial recruitment sector, with an ever increasing regulatory environment, MIFID 2, Dodd-Franck and other legislative changes, we ask ourselves if we will ever return to the heady days of “pre-Lehman/ pre-crash” where our sector was relatively booming with an EBITDA of 30% year on year.
The resulting changes have seen compensation structures change. In trading, % PnL bonuses are being replaced by discretionary payouts. Institutions are looking to reduce costs by “near shoring” core business teams to take advantage of talent in 2nd/3rd cities around the UK. Deutsch Bank, BAML and Bank of New York Mellon being just a few. Globally, Hong Kong is playing 2nd fiddle to Singapore and Tokyo, India is seeing exponential growth with Investors flocking to take advantage of SENSEX / NSE gains on the back of a new government.
A shift in Asset class focus has also seen Banks / Funds go “back to basics” and focus on traditional vanilla products rather than the exotic world of commodities. At Marlin, we are seeing Cash Equities, Distressed Debt and FX asset classes taking precedent in the Investment Banking space. Banks are looking at Strategic hires to rebuild pathways to success as they close Commodity desks and re-align to more regulated markets.
In short, the future is looking bright, with more Emerging Market based firms making London their home, opportunities across Front Office are becoming available.
It’s not so much who looks good on the CV anymore but which Institution will provide stability in an ever volatile market.
Tej Dhindsa – Front Office