Compliance Hot-Shots Command 150,000 As Banks Scramble To Meet MiFID Deadline

- London banks in counter-offer frenzy to halt recruitment of MiFID specialists

- 50% of MiFID specialists searching for new roles are counter-offered

- Ill-equipped financial centres in Europe poaching talent from well-prepared London

London banks are launching a ìcounter-offer frenzyî to retain their MiFID specialists in the face of intense poaching from less-prepared second tier banks and other European financial centres, according to international recruitment consultancy GRS.

Greg McHugh, Head of GRS Munich said: ìMiFID compliance in operational risk in Germany is lagging particularly - probably 12 months behind London ñ the next six months will see an unprecedented level of international recruitment within the MiFID talent pool. We think London will lose as many as 500 qualified professionals over the next 6 months.î

The Markets in Financial Instruments Directive (also known as MiFID) will introduce a single market and regulatory regime for investment services across the 30 member states of the European Economic Area. It aims to: protect investors by making markets deeper, more competitive and more robust against fraud and abuse; respond to changes and innovations which have occurred in securities markets; and complete the process of creating a single EU market for investment services. It will take effect as of 1 November 2007.

Dan Richards, Head of Risk at GRS said: ìItís not unusual for senior MiFID specialists to be offered and counter-offered in 10,000 increments in this market, where salaries are typically an annual equivalent of up to 150,000 a year. It has been a busy time for recruitment consultants specialising in this arena, with estimates of costs to business in the region of 1billion probably not being far off the mark. However itís clear that much of this spend has gone to employees, with around half of our candidates being counter-offered and half of those buybacks being successful ones.î

ìItís important to manage client expectation throughout this process. MiFID specialists are a loyal bunch, many wouldnít consider leaving their current employers until delivery ñ they tend to be less footloose than their higher profile investment banking colleagues. However we are hearing from many candidates that come November 1st, there will be renewed appetite for a change of environment - most we speak to are considering a move in the next 6 months.î