Taylor Root are delighted to release our latest Compliance Salary Guide to all compliance professionals within banking & financial sectors in Hong Kong!

1. Compliance Market Update & Salary Guide
2013
Hong Kong
taylorroot.com
L: taylor-root
T: @TaylorRootLegal

2. Compliance: Market Update and Salary Guide 2013: Hong Kong
Introduction
As a part of Taylor Root’s continued commitment to the compliance recruitment market, we are delighted to present our Hong
Kong Compliance Market Update and Salary Guide for 2013.
Based on market intelligence gathered in the Hong Kong market, our survey aims to provide professional guidance to both clients
and candidates and we thank them for their involvement. We have obtained crucial information from both the employers’ and
employees’ perspectives to enable us to present accurate information regarding market and recruitment trends, compensation
levels and the overall outlook of the market in the last twelve months.
2012 was undoubtedly challenging for most compliance teams within the banking and financial services sector due to the
balancing of new regulations and business expansion expectations in an increasingly regulated environment. In addition, the
continuous effect of the European and US financial crisis has resulted in compliance professionals being expected to advise,
analyze and adapt to regulatory changes with steady, but not major, expansions to their teams.
In this report, we will discuss each sector in more detail including hiring patterns, a review of 2012 and an outlook on 2013.
We will also provide details regarding remuneration and benefits for the compliance market in Hong Kong.
Mark Coates
Partner
taylorroot.com

3. Compliance: Market Update and Salary Guide 2013: Hong Kong
Market Overview 2012
Recruitment activities in 2012 were largely affected by the financial crisis in Europe and the US coupled with the launch-out
of new regulations affecting financial institutions. Overall, the market has been steady although not at the levels seen in 2011
and hires have largely been replacement rather than new headcount except in specific expertise areas.
Candidate flow was stable throughout 2012 although there was a reluctance to leave secure jobs due to the abundant
uncertainties in the market. Candidates had a general concern regarding their job security and accordingly felt it would be
better to maintain the status quo and avoid the “last in first out” phenomenon. Organisations with strong compliance cultures
continued to be attractive to potential candidates and were a major pull factor in candidates moving in 2012.
Investment banks, structured products
Investment banks were generally seeking experienced candidates throughout 2012 especially in the area of cash equities,
structured products or advisory compliance. There is a clear shortage of candidates in these areas and many of our clients
faced difficulties recruiting which was largely due to the movement of suitable candidates in the 2011 period. Overall,
product knowledge (such as cash equities, structured products, fixed income, commodities, and structured derivatives) is
imperative in investment banking compliance and experienced candidates remained in demand throughout the year.
Retail & consumer banking
The new Anti-Money Laundering Ordinance announced by the Securities and Futures Commission which came into effect
in April 2012 created an abundance of excellent opportunities for candidates in early 2012 as institutions reacted and
restructured to prepare for the new implementations. Significant hires were made within the junior to mid-level range with
anti-money laundering and counter-terrorist financing professionals in high demand in the first two quarters and up until the
middle of the third quarter.
The recruitment market within the retail and consumer banking sector remained steady throughout the remainder of the year
as our clients secured additional personnel and successfully implemented regulatory changes to their operations.
As the year closed, experienced AML professionals remained in demand as financial institutions enhanced their policies,
procedures and controls in compliance with the requirements.
Jenny Yeung
Consultant - Compliance
taylorroot.com

4. Compliance: Market Update and Salary Guide 2013: Hong Kong
Market Overview 2012
Funds/Asset Management & Wealth Management
The Asset Management and Wealth Management sector was one of the few areas where we saw stable growth at all levels
in 2012. Recruitment due to business expansion and replacement activities were the dominate reasons for hiring especially
within the mid-sized asset management and investment firms who are still in a stable growth stage in Asia.
Employers faced difficulties recruiting from within the Private Banking/Wealth Management sector especially at the senior
end of the market due to a shortage of sector candidates as a whole. Candidates from securities or investment banking
backgrounds were often required to fill this void (sometimes to the reluctance of hiring managers from the private banking
sector).
PRC-entities
Over the past two years, PRC investment and commercial banks based in Hong Kong have expanded their compliance
departments to comply with regulatory changes and their expanding businesses. We saw significant hires in the Anti-Money
Laundering and advisory teams especially at the start of 2012 with demand slowing throughout the year. Compensation
structure in the form of bonuses was the main attraction for candidates seeking positions within PRC entities in 2012.
Compliance Service Providers
Given the uncertainty of the economy and budget constraints faced by hiring managers, we have seen a significant increase
in domestic and smaller financial institutions seeking third-party consulting firms to support their compliance functions.
Much of this work is done on a project basis and such projects include licensing, (ongoing) compliance support, and specific
AML projects. Accordingly, service providers have been continuing to seek junior to mid-level compliance candidates for their
increased workload. We have also seen demand from asset managers and private equity firms for candidates from compliance
providers due to their excellent project based experienced.
In conclusion, there has been a clear lack of job opportunities for senior professionals due to headcount freezes and budget
constraints especially within the investment banking sector. Recruitment activity has been the highest within the wealth and
funds management sector along with PRC-entities while Anti-Money Laundering has been the dominant skill set in demand.
In regards to employers’ requirements, direct experience remains the most relevant although employers are focusing on the
potential growth of candidates along with their leadership, communication and interpersonal skills.
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5. Compliance: Market Update and Salary Guide 2013: Hong Kong
Outlook for 2013
2013 has started off positivly and a level of confidence appears to be returning to the markets. Recruitment levels will depend
on how the global financial markets perform in the next few months. If they continue in their current form, the outlook will
remain positive and we are expecting a buoyant year in compliance recruitment.
Traditionally candidates become more active in the weeks following Chinese New Year and after their bonuses have been
awarded, so potentially it could be a buoyant post-bonus hiring season compared to previous years.
For hiring managers, business costs remain a concern and their increased awareness of cost-efficiency structures will
continue. In Hong Kong, this means some back-office functions may relocate to less expensive operating countries. Despite
this concern there are many sectors that still see Asia as the hub for their back office function generally.
From a candidate perspective, strong compliance professionals with specific areas of expertise will remain in demand
throughout 2013. For example, clients will continue to seek candidates with strong and relevant experience rather than
candidates with generalist compliance backgrounds due to specific compliance functions within each team.
Investment banks will remain stable as most clients still hold a very cautious attitude in approving headcounts although a
positive shift in market conditions could finally see a relaxing of headcount restrictions. There is currently little uniformity
across the compliance field, with some areas and institutions experiencing substantial hiring, while others are more
conservative. We expect AML functions to continue to expand throughout 2013 and this area to be the most buoyant of the
compliance functions. PRC investment banks will continue to grow with a more conservative approach, but they are expected
to seek candidates who have a background in structured products and all-rounded investment banking to assist in their
expansion plans.
Asset and investment management firms are considered the stable sectors within financial services markets and it remains an
area where we could see significant movement at all levels. Mid-sized asset management firms are particularly busy amongst
the key players who still have room to grow their compliance functions. Compliance candidates with experience in dealing
with Yuan funds and ETF funds will be highly sort from such institutions.
Senior compliance candidates within wealth management providers will remain in high demand. However, several replacement
roles have been filled in the last several months so we are expecting to see a slowdown in this area at a junior to mid level.
The consumer/retail banking market should remain steady in 2013, and we are expecting largely replacement roles throughout
the year. There will be few exceptions where the banks could possibly have AML projects to implement.
Demand for compliance professionals in hedge fund managers is increasing due to the growing volume and complexity of
compliance and regulatory requirements. From the past, we would expect only the largest hedge fund managers to have an
in-house team to manage their compliance requirements, but we have already seen some movement in this sector. Most
hedge fund managers notice having an in-house legal and compliance team would not only relieve some pressure off the COO
but also save the fees paid to compliance service providers or law firms. Candidates with broad compliance backgrounds and
hedge-fund regulatory experience will definitely be in demand in 2013.
taylorroot.com

6. Compliance: Market Update and Salary Guide 2013: Hong Kong
Remuneration & Benefits
Most financial services companies will be reviewing the salaries of their employees in the next 6 months. While most
banking and financial compliance professionals agreed that their total remuneration remained fairly stagnant in 2012, they
are expecting only small increments to their base salaries. Funds and investment managers are competing to recruit the best
candidates resulting in a slight increase in base salary offered in this sector. Other sectors remain fairly stagnant with an
incremental increase from 3% to 8%, and an average of 5.5% increase.
Annual bonus payments almost always make up an element of remuneration packages for in-house compliance professionals.
We have continued to see a broad range of bonus payments between sub sectors and even between companies within the
same specialist market. For example, on average, bonuses were two or three months within the international banks while
Hong Kong/PRC-entities banks could pay from one to even eight months to their employees. The bonus culture of the Hong
Kong/PRC-entities banks has appealed to some candidates, and we saw compliance candidates move from international
institutions to take up these offers in the year of 2012.
Due to budget constraints, relocation has been an issue for international candidates seeking to move to Asia. Many clients are
only considering candidates on the basis that relocation assistance is not a prerequisite to making an applications and this has
largely been accepted by international junior and mid-levels candidates, although they will find it difficult to compete with
local candidates who have the Chinese language skills and the local regulatory experience.
The standard benefits package usually includes private medical insurance, life assurance and pension.
Jenny Yeung
Consultant
Taylor Root Hong Kong
taylorroot.com

7. Compliance: Market Update and Salary Guide 2013: Hong Kong
Salaries
Investment Banking - Securities & Corporate Finance
Title Years’ Experience Organisation Type Salary range (HK$)
Assistant Officer / Officer / Analyst Tier 1 24,000 - 45,000
0 - 3 years
Tier 2 16,000 - 34,000
Senior Officer / Associate / Assistant Manager Tier 1 35,000 - 60,000
2 - 4 years
Tier 2 28,000 - 40,000
Manager / Senior Manager / AVP / AD Tier 1 50,000 - 90,000
4 - 6 years
Tier 2 36,000 - 55,000
VP / Deputy Head / SVP Tier 1 80,000 - 130,000
6 - 8 years
Tier 2 50,000 - 83,000
Head of Compliance / Regional Head Tier 1 110,000 - 160,000
8 - 10 years
Tier 2 75,000 - 100,000
*At senior levels, bonus can be more than 80% of base salary. Country Head of Compliance (Director or Senior Vice President)
from about HK$100,000-170,000 per month base salary and bonus of 50-150%, plus benefits. Regional Head of Compliance
(MD) HK$150,000-260,000 per month base salary and bonus of 50-150% plus benefits.
Funds & Asset Management
Title Years’ Experience Organisation Type Salary range (HK$)
Assistant Officer / Officer / Analyst Tier 1 23,000 - 38,000
0 - 3 years
Tier 2 15,000 - 25,000
Senior Officer / Associate / Assistant Manager Tier 1 28,000 - 50,000
2 - 4 years
Tier 2 23,000 - 38,000
Manager / Senior Manager / AVP / AD Tier 1 45,000 - 75,000
4 - 6 years
Tier 2 35,000 - 65,000
VP / Deputy Head / SVP Tier 1 70,000 - 110,000
6 - 8 years
Tier 2 60,000 - 85,000
Head of Compliance / Regional Head Tier 1 85,000 - 140,000
8 - 10 years
Tier 2 70,000 - 120,000
*Bonus forms a major part of the remuneration package for senior roles and can be as much as 100% of base salary.Regional
or Country Head of Compliance can be earning around HK$110,000-180,000 per month base salary and bonus of 50-100%
plus benefits.
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8. Compliance: Market Update and Salary Guide 2013: Hong Kong
Consumer / Retail Banking
Title Years’ Experience Salary range (HK$)
Assistant Officer / Officer / Analyst 0 - 3 years 16,000 - 26,000
Senior Officer / Associate / Assistant Manager 2 - 4 years 25,000 - 38,000
Manager / Senior Manager / AVP / AD 4 - 6 years 36,000 - 60,000
VP / Deputy Head / SVP 6 - 8 years 56,000 - 90,000
Head of Compliance / Regional Head 8 - 10 years 82,000 - 125,000
*Regional or Country Head of Compliance who are earning on HK$125,000-150,000 per month and 30%-60% bonus.
Insurance
Title Years’ Experience Salary range (HK$)
Assistant Officer / Officer / Analyst 0 - 3 years 20,000 - 40,000
Senior Officer / Associate / Assistant Manager 2 - 4 years 35,000 - 52,000
Manager / Senior Manager / AVP / AD 4 - 6 years 45,000 - 70,000
VP / Deputy Head / SVP 6 - 8 years 63,000 - 85,000
Head of Compliance / Regional Head 8 - 10 years 80,000 - 135,000
*Regional or Country Head of Compliance can be paid beyond HK$110,000 per month and more than 30% bonus plus benefits.
Private Banking / Wealth Management
Title Years’ Experience Salary range (HK$)
Assistant Officer / Officer / Analyst 0 - 3 years 18,000 - 38,000
Senior Officer / Associate / Assistant Manager 2 - 4 years 35,000 - 60,000
Manager / Senior Manager / AVP / AD 4 - 6 years 50,000 - 85,000
VP / Deputy Head / SVP 6 - 8 years 72,000 - 110,000
Head of Compliance / Regional Head 8 - 10 years 95,000 - 135,000
*Similar scales to Asset Management, Regional or Country Head of Compliance. Senior roles can paid from HK$120,000-
180,000 per month base salary and bonus of 50-100% plus benefits.
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9. For more information on the compliance recruitment market please contact a member of the
Compliance team below:
Hong Kong
Jenny Yeung
Consultant
jennyyeung@taylorroot.com.hk
T: +852 2973 6333
Find Jenny on LinkedIn
Singapore
Jeremy Poh
Consultant
jeremypoh@taylorroot.com
T: +65 6420 0500
Find Jeremy on LinkedIn
UK
Stuart Vines
Associate Director
stuartvines@taylorroot.com
T: +44 (0)20 7415 2828
Find Stuart on LinkedIn
Australia
Amanda Atherton
Director
amandaatherton@taylorroot.com.au
+61 (0)2 9236 9000
Find Amanda on LinkedIn
Taylor Root is a member of The SR Group. The SR Group is a specialist recruitment consultancy
dedicated to raising standards in the business environments that we serve. The sectors we cover
include tax, legal, compliance, human resources, marketing and executive search, dealing with
a substantial number of the world’s leading professional partnerships, multi-national corporations
and international banking groups as well as small to medium sized developing organisations.
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T: +44 (0)20 7415 2828 T: +9714 448 7770 T: +852 2973 6333
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30 Cecil Street Level 4,02 Level 12, 25 Bligh Street
#21-03/04 Prudential Tower 520 Collins Street Sydney
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T: +65 6420 0500 T: +61 (0)3 8610 8400 T: +61 (0)2 9236 9000
Taylor Root is a member of The SR Group
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