"The grim reality of London's compliance job market"

The compliance job market in London has taken a nosedive over the past 18 months, leaving many professionals disillusioned and frustrated. Once a sector that recruiters hailed as resilient and even recession-proof, compliance is now facing far fewer vacancies, declining salaries, and an ever-growing pile of responsibilities for those still clinging to their roles. This dramatic shift highlights a sobering reality: compliance is being treated more as a cost centre than a crucial function.

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Fewer Vacancies, More Redundancies

As illustrated by the decision of Citi's former EMEA head of compliance to find a job outside banking, vacancies in compliance have all but dried up. What was once a thriving market with a steady demand for experienced professionals has now become a barren landscape. Redundancies are common, particularly in smaller firms where compliance teams have been gutted in an effort to cut costs. Even large financial institutions, traditionally more stable, are freezing hiring or slashing headcounts in their compliance departments.

The flood of professionals now looking for work has created fierce competition for the few roles that do become available. Many compliance officers who once had the luxury of picking and choosing between offers are now struggling just to secure an interview. The days of ample opportunities are well behind us.

Declining Salaries

Even those fortunate enough to remain employed in compliance are finding their pay cheques much lighter than before. Across the board, salaries in compliance have dropped, with many roles offering significantly less than they did in 2022. One striking example is the hedge fund chief compliance officer (CCO) position, which used to command upwards of £200k ($262k). Today, it's not unusual to see offers as low as £150k for the same role, despite the immense personal risk that comes with it under the Senior Management Functions (SMF) regime.

These salary cuts are not isolated to hedge funds. Across the financial services sector, compliance professionals are being asked to accept less compensation for jobs that come with greater stress and heightened responsibilities.

Overstuffed Roles

As if the shrinking job market and declining pay weren't enough, employers are increasingly packing multiple responsibilities into a single compliance role. What used to be the work of entire teams is now being placed squarely on the shoulders of one or two overworked individuals. Compliance professionals are being asked to do more for less, managing ever-expanding regulatory requirements with dwindling resources.

This consolidation of duties is a direct result of companies viewing compliance as a cost centre. Rather than investing in comprehensive compliance teams to safeguard their operations, firms are focused on doing the bare minimum, often pushing their existing staff to the brink in the process. The result is overworked and undervalued compliance officers struggling to keep their companies on the right side of the law while feeling little job security themselves.

A Reality Check for Recruiters

Just a couple of years ago, compliance recruiters were confidently predicting a multi-year tailwind in the job market. They boasted that compliance was one of the few areas immune to economic turbulence, as firms would always need to stay on top of regulations. How wrong they were.

Today, recruiters are scrambling to find enough openings to place their candidates. Many are frantically trying to fill the few roles available, often for less than desirable terms. What was supposed to be a steady, growing market has turned into a scramble for survival, both for compliance professionals and the recruiters who once championed their resilience.

Jack Mathis is a pseudonym

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