Investment management lawyers benefit from regulatory burden

Regulatory changes throughout the US and the EU have ensured that legal staff continue to play a vital role throughout the finance industry, as banks endeavour to comply with new legislation. Whilst many of those working within this industry have come to view the regulatory changes as something of a burden, it has been good news for lawyers, especially those whose skills are well-suited to a specific sector.

 A rise in demand

During the last quarter of 2012, the demand for lawyers specialising in funds significantly increased within the investment management sector, with recruitment taking place for both permanent and interim positions. This demand is expected to grow throughout 2013, as the investment management sector continues to adhere to the regulations put in place by legislations such as the European Market Infrastructure Regulation (EMIR), the Alternative Investment Fund Managers Directive (AIFMD) and the Key Investor Information Document.

 Salaries and bonuses

Investment management fund lawyers receive some of the best salaries amongst legal employees working within the financial industry, with permanent members of staff taking home £75,000 to £100,000, or more. Contract rates were also seen to rise by approximately 20% during the last year. In addition, lawyers working with hedge funds are likely to enjoy significantly higher bonuses than their investment banking counterparts, providing the fund performs well.

 Who’s being hired?

Employers within this sector have tended to favour candidates who trained at a top 20 law firm, as well as those with previous experience in structuring funds and a sound regulatory knowledge. Notably, there has also been a recent surge in demand for contract lawyers with a knowledge of investment management agreements, Undertakings for Collective Investment in Transferable Securities (UCITS) and fund regulation.

Company secretarial staff have also fared well over the last 12 months, with businesses aiming to strengthen their corporate governance by making an increased number of senior appointments. As FSA-regulated minute-writing know-how becomes regarded as an essential skill, the demand for such secretarial services is likely to rise and salaries could be set to increase.

 How have the regulatory changes affected your financial firm?

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Author

Geoff Fawcett

Director, Hays UK

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Geoff Fawcett has been in the recruitment industry for over 16 years. He is currently responsible for Hays Financial Markets, which provides an integrated recruitment solution to London based Banking & Financial Services organisations. Specialist divisions include Finance, Operations, HR, Marketing, Purchasing, Secretarial, Risk & Compliance, Front Office, Finance Technology and Executive with in excess of 100 consultants.