Brexit, MiFID II, GDPR, Gender Pay Gap and Diversity are the themes we consider top of mind currently which is why we’ve created the Summer 2018 AlgoMe Industry Pulse Report.
We wanted to get under the skin of some of these key events and burning issues for 2018. In doing so, we revealed some very interesting results and statistics.
Given a choice of 7 cities, Dublin, Paris and Amsterdam are the top three choices for Asset Managers, Fintech and Financial Services employees to relocate to following Brexit. While 54% would not consider moving as a result of Brexit.
When it comes to regulation; we are not surprised to find MiFID II and GDPR will affect over 60% of the roles in the industry.
Positively, 59% believe Gender Pay Gap Reporting will improve the career progression of women.
Please read the report for the full information and do get in touch if you would like to know more about your industry workforce.
The FCA outlined earlier this week, through the voice of CEO Andrew Bailey, the blueprint of the regulator's approach post-Brexit. In short - the way I read it - the FCA will aim to regulate towards outcomes in line with the European standards ("no race to the bottom") while operating with a hands' off approach ("principles and outcome based"). This is a very tight rope to walk ... Indeed, as I see it, the future UK regulation will need to be aligned with the European one, to ensure continuation of fluid collaboration and cooperation (the Europeans were quite clear on that matter during the Brexit talks), which the FCA is keen to deliver on. At the same time, the FCA seems to be responding to clamours of "too-much-regulation," which emerges regularly from some ranks of the Investment Management industry. I take the view that the FCA post-crisis approach - in line with most European regulators - has been to influence the resolution of issues that our industry is struggling to cope with on its own: Investor protection, transparency on costs, adequate governance models, conduct standards, diversity models and so on. This, to me, amounts to influencing a change of culture in our industry (which does not mean questioning the raison-d'être of the industry, i.e. increase the value of capital entrusted to us). Anyway, ten years of post-crisis regulation has brought some constructive changes to the industry, and some challenges, too, but I am not sure all has been achieved; it takes time to undertake a culture change as ambitious as the one we are tackling. As such, I find it risky that the FCA should lift their foot from the pedal so soon. In my opinion, the odds are high that the industry reverts to pre-crisis behaviours, if the regulator is already signalling that they will relax their grip on execution. I really want to hope that a change in approach will get to the ambitious outcomes that the industry needs, but we have been there before and failed to deliver. What would be different this time?
With all the tension and political noise....bit of Brexit humour to lighten the mood :-)
France's Europe minister Nathalie Loiseau has called her cat Brexit
France’s Europe minister Nathalie Loiseau has told how she calls her cat Brexit as he is “unsure whether he wants to go out or not” when the door is open. “He wakes me up miaowing like mad because he
The CSSF says existing Luxembourg-based companies “wishing to receive additional licences or substantially changing operational models to cope with Brexit-related aspects” should speed up their Brexit planning and “submit their applications […] as soon as possible”.
I am surprised that there are still companies that need to be reminded of this. Independent if you believe that Brexit will happen and if it will be a hard or soft Brexit, I would have thought any company by now would have done their risk assessment and would have put its plans in place ?