Following the economic crisis and scandals that have occurred within the finance industry in recent years, monetary authorities in many jurisdictions have imposed a plethora of new regulatory requirements on all aspects of the industry. This has had a significant impact on the way companies manage and hire employees and who they employ.
The new regulations have resulted in increased demand for workers in a number of job areas, like compliance. Particularly in demand are professionals for positions that are primarily concerned with the implementation and monitoring of the new rules and how they impact on businesses.
According to an analysis of the legal sector recently presented by Randstad Finance and Professional, the heaviest demand is for regulatory and derivative positions in financial services departments. Overall, however, recruitment in the sector has remained relatively steady with competitive salaries and no major changes.
The new regulatory climate around the world has generated a demand for derivatives lawyers as businesses face the demands of the ever-growing number of rules that are being applied. Their advice is needed to ensure that businesses do not fall foul of new regulations in what has become a rapidly changing environment. Appropriately qualified individuals will find that there are an increasing number of these compliance jobs available in the market.
Among the main changes that have affected the finance industry are the retail Distribution Review in Britain, the Dodd-Frank Financial Regulatory Reform Bill in the United States and the Markets in Financial Instruments Directive in Europe. The need to meet the new regulations has meant an increase in the compliance costs finance companies. And with the division of the Financial Services Authority into the Financial Conduct Authority and the Prudential Regulatory Authority, compliance costs are expected to rise by a further 20%. Given the requirement to comply with all the changes, demand for legal professionals in the finance industry looks set to continue to increase.
Derivatives lawyers interested in seeking jobs in compliance should examine the possibilities on offer by major recruitment firms like Randstad. This will give them an excellent idea of the job market and the qualifications they will require. Generally, they will need to have wide-ranging legal experience, particularly in regard to financial and regulatory systems in use around the world, usually involving a working knowledge of insolvency, capital markets and litigation. However, requirements for the job will not be restricted to these areas. Aside from keeping abreast of financial regulatory changes, they will need to demonstrate an active interest in disciplines such as laws of tort and contract.
For their part, prospective employers will have to understand that uncertainty in the current market means that lawyers and other professionals are often reluctant to take the risk of changing employment. The available pool of suitably qualified candidates for compliance-related jobs will therefore be smaller than might have been expected and it will be correspondingly more difficult to find the best candidates for the job.
