2010 has been a mixed year for much of the industry. Net inflows seem to be coming back for the majority of performing funds which should hopefully translate into at least a reversion to previous salary and bonus levels.
There are however 2 challenges which have come to the forefront in the last couple of years.
Firstly, regulation is changing and will continue to change. Public pressure on bonus levels led to increased demands from Governments and regulatory bodies alike to reduce the previous payout structures which frustrated the everyday person during the credit crisis.
Secondly, investors are looking for increased transparency, robust operations and segregation of duties to ensure their capital is best protected. This will inevitably lead to increased headcount which is good for recruitment but perhaps less so for the distribution of the bonus pool.
