Regulatory change is already having a significant impact on the investment management sector. New regulations – specifically, FATCA, Volker, Dodd-Frank, MiFID II, RDR and the European Market Infrastructure Regulation (EMIR) – mean asset managers are having to face up to the prospect of more stringent checks and are being forced to evolve.
For some of the planned regulatory developments (like the Cross Border implications of UCITS IV), the outcome is not entirely clear. But – for others (e.g. FATCA and KIIDS) – the impact on the jobs market is more obvious and is likely to create demand for specialists in key areas.
Regulatory Compliance Professionals
As regulations are introduced, we will see key demand for people within regulatory compliance. For these jobs, individuals with experience of specific regulatory fields (e.g. FACTA) will become highly valuable.
Client Reporting Specialists and Performance Analysts
Clients – the lifeblood of the industry – are demanding greater transparency, so buy-side firms need to review and improve both the quality and detail of their reports and the fund performance data that contributes to these. This means client reporting and performance analysts will be highly sought-after.
The introduction of Solvency II means asset managers will also be required to improve the standard of data provided to their insurer clients. Data analysts with asset management exposure will therefore become increasingly in demand.
Alternative investments are coming under particular scrutiny. Small to mid-sized hedge funds now have relatively lean operating structures in place and – because of this – will struggle to cope with the sheer volume of regulatory reviews currently being implemented. This will lead to increased demand for operational control professionals, particularly on a contract basis as these firms look to implement shorter term solutions to establish a framework to deal with regulatory change efficiently.