After a period of relative buoyancy, the appetite of most financial services organisations in Scotland to recruit has dampened over the last six months, with investment operations firms and the large banks all scaling back. However, opportunities remain within certain sectors currently.

1. Risk and compliance

Understandably, the state-aided banks in Scotland have been focusing more on risk and compliance positions over the last two years as they scale back their operations and deal with more demands from regulators.

However, this year the demand for these staff has increased dramatically.

Andrew Welsh, associate director at Change Recruitment in Edinburgh, says that they’ve seen four times the number of risk and compliance roles this year compared to the first half of 2011: “This demand is predominantly being driven by the banks for the regulatory risk and credit risk areas."

2. Wealth management – back office and front office roles

There are a range of wealth managers talking up expansion plans in Scotland, but often for different reasons.

At Barclays’ wealth management division, for instance, it’s a combination of private bankers and those in operational positions based out of Glasgow. At more boutique firms like Rathbones and Quilter, the focus has been on bringing in relationship managers with a transferable book of assets.

“While the institutional fund managers have suffered in Scotland recently, the door is always open to good wealth managers who can bring assets with them,” says Graeme Knox, director of Scottish fund management headhunter Knox Consultancy.

“The feeling is that the deeper the pool of intellectual talent the better it is for clients.”

3. Change managers

There are signs that the juggernaut of change management recruitment within Scotland’s banks, which has largely been on a (lucrative) contract basis is coming to a steady stop. For now, however, it remains an active – if not amazingly buoyant – place to work.

“Project and change professionals for regulatory projects such as RDR, FATCA, Solvency II are also in demand,” says Welsh.

4. IT in finance positions

There are two elements to the increased demand for techies north of the border. Firstly, a number of investment banks – notably J. P. Morgan and Morgan Stanley – have been ‘nearshoring’ their development work, which is creating a steady supply of new roles. Secondly, asset managers have been hiring for technology jobs.

“Some asset managers in Scotland are moving to a quant-based investment strategy, while other firms are implementing front to back office changes to their IT systems,” says Mike Stirton, divisional director at recruiters Core Asset Consulting. “This is creating demand for project managers, business analysts and – to a lesser extent – developers.”

5. Specialist consultancies

If financial services firms in Scotland are keen to hire for the likes of risk and change, some are being hampered by overriding restrictions on recruitment. The result is that specialist niche consultancies – which would fall under a separate budget – are being drafted in to carry out some of the work, and they’re recruiting.

“It’s easier for banks to bring in a consultant than it is for them to hire a contractor,” says Mike Leeman, director of financial services at recruiters Bright Purple. “We’re recruiting for a number of roles at associate level and above.”