Ramping up risk-related spending

Banks are pouring money into risk-related IT software, according to a new study. And guess what? It's partly down to MiFID.

The study, conducted by research firm Datamonitor, offers illumination on the spending aspirations of over 100 firms in the US and Europe. It suggests they intend a 'significant increase' in their risk management-related IT spend this year.

Recruiters confirm a concomitant leap in hiring. "We are seeing quite a huge demand for all [risk management] areas," says Rob Lycett, an IT consultant with London recruitment firm Astbury Marsden.

He says both risk and compliance-related IT roles, especially those with links to Basel II, Sarbanes Oxley and the ever-looming Markets in Financial Instruments Directive (MiFID), remain in high demand as firms continue to grapple with the onslaught of new regulations.

US banks are creating risk-related IT jobs back home, too. Jason Kerkman, partner at US-based Comprehensive Recruiting, describes the market there as growing "tremendously", with demand focused on experienced candidates who can come in as risk analysts and project managers, and pay rising in the region of 10% to 15% per year.

Lycett says an experienced business analyst working in a MiFID-related position in the UK can command up to 500 to 700 a day.

Where possible, however, Lycett says banks are keen to bring people in on a permanent basis, and the shortage of skilled staff means they're prepared to accept business analysts with no prior MiFID experience: "Anyone with basic knowledge of business analysis can pick up MiFID after spending some time in the classroom." Insurance and pharmaceuticals are popular hunting grounds.

Analysts moving into MiFID from other industry areas can expect to command a permanent salary of 45k to 50k, plus a bonus of up to 25%.