Guest comment: MiFID will not lead to an N2-style skills glut

MiFiD contractors will not be left twiddling their thumbs after the November deadline passes, says compliance search consultant Marnie Woolf.

With the MiFID deadline of 1 November fast approaching, the world of compliance has never been busier or more in the public eye - well, at least not since the last major change affecting regulation, N2!

In 2002, following the implementation of N2, there were many compliance contractors suddenly actively looking for new roles. We saw too many candidates all with the same experience within weeks if not days of each other. This, coupled with the City downturn seen in late 2001, resulted in a stagnant compliance recruitment market for a period of six to 12 months.

Five years on, are we wiser? Is the situation any different? And have we learnt lessons from the way N2 was resourced?

It would appear so. MiFID planning has been executed thoughtfully, with many contractors undertaking day-to-day compliance roles, allowing MiFID to be coordinated by existing compliance teams.

The benefits of this situation are twofold:

For the employer, the MiFID knowledge remains in-house post-1 November and does not walk out the door with the contractor.

For the contractor, their skill set is not seen as 'old hat'.

Furthermore, the issues surrounding MiFID vary from business to business and therefore those contractors who have been employed specifically to execute the MiFID plan should not find themselves in a situation where they are competing for roles against others with identical experience.

In terms of timing, there will still be outstanding issues after the 1 November deadline and whilst many contractors will finish in November, we are likely to see staggered termination dates, resulting in a steady stream of available talent, rather than a flood. Financial Institutions typically reduce their hiring in Q4 for a multitude of reasons; this, coupled with the post-bonus resignations in the New Year, mean that Q1 is always a busy time, with many new opportunities available. Timing-wise, this may prove ideal.

The significant employers of MiFID contractors have been the larger houses, where they have compliance teams numbering upwards of 50 people. In these sized teams, it can be easy to create opportunities for good-calibre individuals and I think we will see many MiFID contractors being offered permanent roles and therefore not entering the job market.

The reality is that there is unlikely to be a glut of MiFID specialist staff looking for roles in November: many will be retained by their employers, many don't have specific MiFID experience, and those that do will trade on their other experiences, not just their MiFID knowledge.

Marnie Woolf is managing director of Woolf and Co., a compliance recruitment consultancy.