BRUIN Financial CITY HORIZONS 2016 Insights into the financial services sector

On 23rd June Britain voted to embark on the biggest constitutional change in nearly 50 years. But after what appeared to be a Summer-long phoney war, we are yet to learn what the consequences of the result will bring - other than the well publicised tautology of ‘Brexit means Brexit’. There has been extensive reporting on what Brexit may, or may not mean for the UK; along with who, what and how we may be affected. Whilst the only issue that has actually appeared as the sine qua non of Brexit seems to be restricting immigration, the impact that this could have on the future of UK plc remains unclear. What is clear however is that the contribution of the UK financial services sector to the global economy - well in excess of £60bn - cannot be ignored in any forthcoming negotiations. Furthermore, history has taught us that the UK financial services sector is resilient and adaptable to change.

There is an argument therefore that the result may offer the opportunity for banks to work alongside regulators, investors and clients to draft a new framework agreement that is fit for purpose – not just in terms of the UK’s relationship with EU countries, but with specific focus on the UK’s role as a global financial centre. But is this the attitude of those working in financial services industry? What is their perception of job security in the current climate? Has the result impacted on the UK’s attractiveness as a place to work? City Horizons explores these questions, looking at the perspectives of those working in financial services, canvassed over a 3 month period in 2016.

Robert Thesiger Chief Executive Officer, The FISER Group

Once Article 50 is invoked, which is anticipated to be in March 2017, the ensuing negotiations are expected to take months and more likely years before there is clarity on the outcome for UK-based financial services firms.

This has understandably had an impact on the professionals working in the sector. Respondents were divided in their expectation for the UK economy and job market over the next 2 years. Only 16% anticipate that the outcome will be positive, with no significant difference when filtered by nationality.

However, the majority of our clients have cited that in the main, regardless of the outcome of negotiations, their intention is to retain their headquarters in London and build out additional teams in the UK to oversee European hubs, along with marginally increased resources in Luxembourg or Ireland.

ARE FS PROFESSIONALS CONCERNED ABOUT JOB SECURITY OR FINDING NEW OPPORTUNITIES?

Whilst the majority of candidates are not expressing concerns about their short term or future prospects, this is a consideration for a significant number of FS professionals.

Although the uncertainty was certainly felt in the run up to the referendum, it is evident that the market has responded to the stabilising effect of having a result – even if it was not the one widely anticipated in the City.

In fact, many active candidates have indicated that the job market in financial services has improved since the results were announced.

We have noted an increased demand across almost every sector, as financial institutions engage with clients, fund gatekeepers and vendors in a push to retain assets and manage market volatility.

The majority of respondents anticipate the UK economy

and jobs market to be either stable or positive but a

large proportion see the outlook as negative.

Just under half of respondents have concerns about their job

security and finding a new opportunity. Nationality and/or

type of passport had no discernible impact on results.

WHAT IS THE FUTURE OF UK PLC?

Many clients had comprehensive scenario plans in place for either outcome, which included an audit of roles that might be affected, but over half of respondents indicate that they have had no communication from their employer about the potential impact on their business area.

Clear and open lines of communication are crucial and the message to all employees, and particularly to EEA citizens, must be that it is business as usual at the very least until Article 50 is invoked, and in all likelihood until the UK has formally left the European Union.

Whilst the UK’s as yet unknown relationship with the rest of the EU presents a challenge when forward planning for skill sets and headcount management, we have seen increased demand in a number of areas since the result. Financial institutions are prioritising hires that minimise or manage their exposure to risk, particularly in compliance, change and operational/ business risk professionals.

HAVE EMPLOYERS COMMUNICATED TO EMPLOYEES THE POTENTIAL IMPACT ON THEIR BUSINESS AREAS ?

Over half of respondents have had no

communication from their employer on the

potential impact on their business area.

HAS THE EU REFERENDUM RESULT AFFECTED THE APPETITE OF CANDIDATES TO MOVE EMPLOYERS?

51% NO

For over 90% of respondents the result of the EU

referendum has not affected their appetite for a new

opportunity and a third have stepped up their search.

Respondents overwhelmingly indicate that the results of the EU referendum has not deterred them from their job search. Neither has the UK become less attractive as a place to work, which was consistent regardless of nationality or type of passport holder.

However timescales have become increasingly protracted with company-wide freezes and

processes that have taken several months to reach offer stage. We have also noted more vigorous attempts by employers to retain their employees, with counter offers and buy-back incentives noticeably more prevalent.

49% YES

BRUIN Financial is part of The FISER Group. The UK’s

leading specialist in financial services human capital.

BRUIN Financial Bridewell Gate 9 Bridewell Place London, EC4V 6AW

Tel: +44 (0) 203 145 3333

Email: info@bruinfinancial.com

Web: www.bruinfinancial.com

About BRUIN

BRUIN Financial is a specialist financial services recruiter.

We place ‘Tomorrow’s Talent Today’ on a permanent, temporary and interim

basis, exclusively in financial services across the following areas:

• FINANCE & ACCOUNTANCY

• OPERATIONS

• WEALTH & ASSET MANAGEMENT

• CREDIT & RISK MANAGEMENT

• PROJECTS & CHANGE MANAGEMENT

SALES & DISTRIBUTION

MARKETING

• COMPLIANCE