In 1978, economist James Tobin proposed a tax on cross-border currency transactions. This tax would occur every time a stock, bond or derivative was purchased or sold.

This concept may now be implemented in the EU. Its aim is to slow down the number of speculative dealings and provide a vital source of revenue. A vast volume of transactions is seen to contribute to volatile currency markets and economic instability.

Economic and ethical arguments are used to support the tax. The European Commission acknowledged potential detrimental financial impacts whilst using these arguments to justify continued support. For advocates, FTT is an essential reaction to the increase in foreign exchange trading.

Opponents have reacted quickly with a number of reports being published. Current criticism focuses on the negative socio-economic impact of financial trading shifting away from the EU. In London, thousands of people work in foreign exchange markets and, according to Allister Heath, approximately 45% of currency trading is in the ‘swaps market’. Ernst and Young argued this week that FTT would damage the GDP of EU states and AIMA stated there would be significant harm to EU cross-border trade.

International financial instability calls for a new international structure but is Tobin Tax the answer?

By Beth Horne
Researcher, Tax In House & In Practice
T: +44 (0) 2070 092 0137
E: bhorne@morganmckinley.co.uk

A resume or CV is not the only way to get noticed by potential employers

However – as well as keeping your CV/resume polished and up-to-date, it’s worth being aware of the other methods that companies are starting to employ in order to filter out strong candidates.

The Wall Street Journal yesterday reported that a venture capital firm, Union Square Ventures asked investment analyst job applicants to submit links representing their ‘web presence’ such as a Twitter profile or blog. They were also asked to supply short videos demonstrating their interest in the position.

The reason for employers’ interest in these new ways of sourcing candidates is that CVs can be a limited way to find out information about an individual.  They provide the important, but basic factual information on work experience and education.  However, there is little insight into personality and the possible ‘fit’ the candidate may have with the rest of the company.

In the current uncertain economic climate, every hire a company makes it crucial and employers are likely to be more interested than ever in finding out more about the person they might be interviewing.  So even if your recruiter or interviewer only asks for a CV or resume, it’s definitely worth spending time carefully creating and moulding your online persona as it may well help your next career move.

For advice on how to stand out from the crowd both in your CV/resume and online, contact Morgan McKinley: marketingdepartment@morganmckinley.co.uk

Click to view the London Financial Services Salary Survey 2012

We recently surveyed over 370 hiring managers and professionals working across financial services in London to hear their predictions for hiring and remuneration for 2012.

Survey highlights show that only 12% of those in the permanent market are feeling more confident about job availability compared to this time last year. On a more positive note, just over a third (35%) are optimistic that salaries will rise over the course of 2012 while 50% expect salaries to stay at their current levels.

The mixed findings of our survey clearly reflect the lack of visibility and turbulence in the hiring market as the new year begins. It is well known that financial markets thrive on stability. Therefore a conclusion to the eurozone crisis and clarity on regulatory issues such as the Vickers report should bring greater transparency and confidence to the banking system in the UK.

We hope you find this salary survey informative and welcome your feedback. I would also like to take this opportunity to thank you for your continued support and wish you all the best for 2012.

Click to view the Accounting, Finance & Support Salary Survey | UK 2012

To gain insight into hiring and salary trends for 2012, we surveyed 350 senior-level operational and HR managers working in accounting, finance and support. We targeted three areas: commerce & industry, professional services and the public sector.

These are clearly diverse markets but overall, the outlook is that there will be modest growth in 2012, at a rate similar to 2011. Positively, more than half of the firms we surveyed (including multinational corporations and SMEs) have hiring plans for Q1 2012.

On the whole, salaries are expected to remain relatively stable in 2012. Increasingly professionals are considering ‘holistic’ packages rather than focusing on basic salary offers. Elements such as flexible benefits, work/life balance and professional development are becoming more important to job seekers.

We hope you find this salary survey informative. If you have any questions or feedback, please feel free to contact me directly on +44 (0) 207 092 0078 or email cleeson@morganmckinley.co.uk.

From the credit crunch in 2008 to the eurozone crisis in 2011, risk management has never been so topical. This was evident last night, when more than 60 financial services professionals attended our exclusive risk debate at One Moorgate Place.

We were lucky to have some of the City’s most senior risk specialists in attendance, along with a distinguished panel consisting of a leading editor from a well known City newspaper, a senior risk representative from a UK regulatory body as well as a global head of risk methodology from a leading investment bank.  This all led to thought-provoking discussion and some sharp intellectual sparring! Abiding by the Chatham House Rule, I can’t tell you what was said, but here are some of the topics that were discussed. I’d love to hear some of your thoughts as well – let the debate continue…

1. Although numerous causes of the 2007/08 credit crunch have been mooted, many experts feel that the crisis was, “not a natural disaster, but the result of high risk, complex financial products, undisclosed conflicts of interest and the failure of regulators, the credit rating agencies, and the market itself to rein in the excesses of major financial institutions.”
   
   Why was risk management not able to prevent such a global meltdown?

2. In recent years there has been major regulatory reform across the financial services sector, as well as a huge drive to ramp up risk management frameworks. Barely four years have passed since the last global economic crisis and we again find ourselves in another one, this time on a more sovereign scale with the eurozone crisis.
   
   Having concentrated on developing micro risk management tools, along with more in-depth analysis from a credit perspective, why is it that the macro-level risks were seemingly ignored?

With the new measures in place, do we now feel confident from a risk management perspective, that we are better positioned to recognise signs of an impending crisis? And what are the key areas to be wary of moving forward?

(L-R) Eduardo Epperlein – Global Head of Risk Methodology, Global Risk Management, Nomura, Allister Heath – Editor, City AM,  Michael Wardle – Head of Market Risk and Trading Review, FSA.

View full press release >>

Returning to December 11 – job availability was at its lowest monthly level for the whole calendar year. This is partly because December typically sees a fall in job opportunities as it is a shorter working month due to the festive period. However taking this into account, December 11 represented an even greater slowdown than expected in financial institutions’ hiring activity across London. As mentioned in previous Employment Monitors, onging issues in the eurozone, compounded by turbulence in financial markets sent shockwaves through financial institutions in Q3 11 and Q4 11, rendering the hiring market very subdued, particularly in the wind down towards Christmas. Sentiment from hiring managers remained highly cautious in December 11, influenced by well-documented volatility across financial markets plus announcements of potential lay-offs. This has had a clear effect on professionals’ confidence in the jobs market, with a 40% drop in those who were active in the hiring market in December 11

The increase in the time taken to fill job opportunities from 55 to 61 days – the longest period since February 11 – highlights the challenges that exist in managing professionals through the process of securing a new role. Whilst it is usual to see recruitment processes in some institutions speed up to get key hires on board towards the end of year, evidence in December 11 points towards the opposite with even longer job sign-off and interview processes. As we have noted previously, the City hiring market thrives on confidence, and there is currently a distinct lack of confidence amongst hiring managers.

Referring back to the last eight years of the London Employment Monitor, we look with interest to see how 2012 will pan out. Anecdotal evidence from the City’s major employers indicates that the first half of 2012 may be slightly better than H1 11, but visibility remains limited. Looking at recent history, even in the ‘rebound’ year of 2010, the overall volume of jobs released (61,671) was so far below 2007 job numbers (114,471) that it begs the question we are regularly asked: will London financial services hiring ever return to the same level of activity.

The first week back in the office is always hard work isn’t it? How do you feel once you are back at your desk, with no more Christmas parties to look forward to? Chances are, it’s not your favourite time of the year but for many this is a time to start thinking about what they want to change about their career in 2012.

Here are our top tips for the best start to a job search in 2012:

1. Make a plan

A good start to the New Year is writing up a detailed game plan. What role do you want to move into and how are you going to make sure you get there?  Reflect on what you really want in your next role. Explore your options by researching potential careers, jobs and employers.

2. Network

Gain insight into your desired role and opportunities in 2012 by making contact with people already working in the industry. Showcase your skills by creating an online presence on social networking sites such as LinkedIn. Ensure your LinkedIn page optimises the right key words as part of your job search.

3. Gain new skills

Attending training courses, professional development seminars or working towards a new qualification will add to your skill set and make your CV stand out from the crowd.

4. Freshen up your CV

Ensure your CV is completely up-to-date with your current role and responsibilities.  Focus on accomplishments rather than responsibilities.  Check out our CV preparation page.

Send in your updated CV to london@morganmckinley.co.uk

David Cameron underlined in his New Year’s message that the Government will tackle “excess in the City”. He went on to refer to unjustified rewards for the very wealthy and commented that “a few at the top get rewards that seem to have nothing to do with the risks they take or the effort they put in.”

This is strongly worded sentiment from our Prime Minister, ensuring that we start the New Year with a continuation of the much publicised and long-running debate over financial services compensation which arose in the wake of the financial crisis.

With such persistent interest in City remuneration, last month Morgan McKinley’s Financial Services Division published research into anticipated bonuses.  Take a look at the results of our Bonus Expectations Survey which gives an idea of the bonus payments that ‘average’ City workers predict to see across their organisations for their performance in 2011.

Furthermore, to provide comprehensive guidance on financial services remuneration for the coming year, Morgan McKinley will shortly be launching its annual Financial Services Salary Survey – London 2012.

To ensure you are on the mailing list for an electronic copy of this report please contact pressoffice@premiergp.com

Dearest Diary

Do I really need to do a new year’s resolution list?  Well ok, if you insist.

Here we go:

1. I promise to be nice to my in-laws.  Really, I do promise.

2. I must stop eating carbs in large quantities.  It’s still ok to have toast at work in the morning. I mean it is free and given the current climate, I think that’s a sensible decision.

3. I must run 3 laps around the park every day.  No need to join a gym I say (note to self – more money saved! Gosh I am clever).

4. Update my CV and send it to the lovely people at Morgan McKinley.  They did find me a fantastic job 3 years ago but just like the new socks that my lovely in-laws will once again give me as a Xmas present, I think I need to freshen up my career.  As I write, I am also thinking I should begin this resolution today and try and beat the January rush – gosh diary, I am a clever clog.  The rest of the resolutions can wait until January 1st or 10th…I hate to stick too much to tradition.

Signing off for now.

James

P.S. Resolutions 1-3 are really not that important are they?

Top career changing tips for 2012:

• Optimise your visibility online: Recruiters use sophisticated search strategies to find the best candidates online. If you are looking for a particular job, repeat those key words throughout your CV and LinkedIn profile. Update your LinkedIn profile regularly and ensure you have detailed your qualifications (or current study modules) and any work experience, as well as your key skills.

• Keen to work abroad? Now is a great time to add some international work experience to your CV. Demand for experienced professionals is high in Asia Pacific (particularly Shanghai) and emerging markets in Eastern Europe.

• Have you considered contracting? Contract or temporary roles can be lucrative in terms of pay rates and they give professionals great exposure to different industries and systems. Contracting offers flexibility and autonomy but you will be expected to ‘hit the ground’ running to add value to the business. Also, many companies look to hire contractors during times of economic uncertainty.

Top job market predictions for 2012:

• Think tech: The technology sector is the ‘one to watch’ in 2012 in terms of exciting job opportunities. Companies are investing heavily in technology (speed, regulation and risk management are the main drivers) creating opportunities for professionals across a variety of roles.

• Salaries – think outside the box: On the whole, salaries are expected to remain relatively stable in 2012. Employees are increasingly considering ‘holistic’ packages rather than focusing on basic salary offers – elements such as commission, flexible benefits, work/life balance initiatives and career development plans are becoming more important to job seekers.

• ¿Hablas español?: In many cases, demand for professionals with multilingual skills outstrips supply. Spanish, German, Chinese and Portuguese language skills are particularly sought after and this should continue into 2012 and beyond.