Written by Joanne Lo, Head of Risk & Compliance at Lewis Sanders
Q1/2025 Compliance Update
Our comprehensive in-house legal and compliance market report is usually released each summer. As we have observed evident trends in the compliance market in recent months, we wanted to offer some interim insights as well.
Financial services
Traditional Finance
Traditional finance remains cautious in its compliance hiring. This, combined with the evolving regulatory landscape in newer areas such as virtual assets, electronic trading, payments, and even some aspects of insurance, has prompted many compliance professionals in traditional finance to explore opportunities in the “new financial system”.
Those who are keen to remain in traditional finance are increasingly prioritizing job stability and a sustainable work culture over purely monetary compensation, due to the unstable economic environment and ongoing restructuring. This trend is especially noticeable among senior and mid-level professionals. Throughout 2024, senior level movements did not lead to significant wage increases, while mid-level salary increase expectations have been mild at around 10-15%. In contrast, junior candidates continue to seek raises of approximately 15-20%.
Virtual Assets
As mentioned above, the virtual assets regulatory landscape is evolving. For some time now, the Hong Kong government has been clear on its ambition to strengthen the city’s status as a leading global and regional hub for virtual asset businesses. The SFC has also aligned with this goal, as it continues to grow its headcount dedicated to regulating virtual assets.
This has led to even more demand for those with AML/FCC, regulatory compliance, and licensing experience.
Given the limited candidate pool in this developing area, companies such as crypto exchanges have recently been willing to offer salary increments ranging from 25% to 35% to attract the right talent. Although the exception rather than the norm, we have even seen 50% increments being offered. For those transitioning from traditional finance to virtual assets, salary increases now typically range from 8% to 25%, as the need to re-train is usually factored in.
Commerce and Industry
Compliance hiring in this space is also on the rise, partly due to new regulations implemented in 2024 across the European Union, such as the Corporate Sustainability Due Diligence Directive (CSDDD) and the EU Supply Chain Act. These regulations have prompted companies to bolster their compliance teams to ensure adherence, resulting in heightened demand for professionals skilled in supply chain compliance, ESG, data privacy, and product compliance.
Private Practice
Fuelled by intensified scrutiny from law societies in key regions like China and the UK, some law firms have increased their compliance headcount. The fact that this is happening during a time when many law firms have cut back on fee earner hiring is a testament to the importance of the compliance function right now. Experienced compliance professionals capable of navigating complex legislation are particularly in demand.
If you have any questions or would like to discuss the job market or candidates in general, please contact me via email (jlo@lewissanders.com) or WhatsApp (+852 6446 3601) for a confidential chat.
Q1/2025 Compliance Update
Q1/2025 Compliance Update
Our comprehensive in-house legal and compliance market report is usually released each summer. As we have observed evident trends in the compliance market in recent months, we wanted to offer some interim insights as well.
Financial services
Traditional Finance
Traditional finance remains cautious in its compliance hiring. This, combined with the evolving regulatory landscape in newer areas such as virtual assets, electronic trading, payments, and even some aspects of insurance, has prompted many compliance professionals in traditional finance to explore opportunities in the “new financial system”.
Those who are keen to remain in traditional finance are increasingly prioritizing job stability and a sustainable work culture over purely monetary compensation, due to the unstable economic environment and ongoing restructuring. This trend is especially noticeable among senior and mid-level professionals. Throughout 2024, senior level movements did not lead to significant wage increases, while mid-level salary increase expectations have been mild at around 10-15%. In contrast, junior candidates continue to seek raises of approximately 15-20%.
Virtual Assets
As mentioned above, the virtual assets regulatory landscape is evolving. For some time now, the Hong Kong government has been clear on its ambition to strengthen the city’s status as a leading global and regional hub for virtual asset businesses. The SFC has also aligned with this goal, as it continues to grow its headcount dedicated to regulating virtual assets.
This has led to even more demand for those with AML/FCC, regulatory compliance, and licensing experience.
Given the limited candidate pool in this developing area, companies such as crypto exchanges have recently been willing to offer salary increments ranging from 25% to 35% to attract the right talent. Although the exception rather than the norm, we have even seen 50% increments being offered. For those transitioning from traditional finance to virtual assets, salary increases now typically range from 8% to 25%, as the need to re-train is usually factored in.
Commerce and Industry
Compliance hiring in this space is also on the rise, partly due to new regulations implemented in 2024 across the European Union, such as the Corporate Sustainability Due Diligence Directive (CSDDD) and the EU Supply Chain Act. These regulations have prompted companies to bolster their compliance teams to ensure adherence, resulting in heightened demand for professionals skilled in supply chain compliance, ESG, data privacy, and product compliance.
Private Practice
Fuelled by intensified scrutiny from law societies in key regions like China and the UK, some law firms have increased their compliance headcount. The fact that this is happening during a time when many law firms have cut back on fee earner hiring is a testament to the importance of the compliance function right now. Experienced compliance professionals capable of navigating complex legislation are particularly in demand.
If you have any questions or would like to discuss the job market or candidates in general, please contact me via email (jlo@lewissanders.com) or WhatsApp (+852 6446 3601) for a confidential chat.