Hong Kong Compliance Salary Survey 2018
Hong Kong Compliance Salary Survey 2018
www.aquissearch.com
Introduction The Aquis Search Hong Kong Compliance Salary Survey 2018 details salary information and recruiting trends in the business sectors we cover. Our information has been researched and collated with the help of our clients and candidates and from our working knowledge of the marketplace. Aquis Search consultants have extensive expertise in their practice area and the information reported is based on telephone interviews with hiring managers, HR professionals and in-house recruiters as well as data extracted from our own extensive database and internal research resources. As with all reports that detail salary information and trends, we represent the mainstream view and we recognise there will be individual situations that fall outside the data published. This survey is therefore a guide to general movement in the sector. Please contact us for further information or for clarification on any of the compensation trends detailed in this report.
www.aquissearch.com
Hong Kong Compliance Salary Survey 2018
2
Compliance Market Overview Overall, it was another active year for compliance hiring in Hong Kong as demand for compliance professionals continues. Chinese headquartered companies particularly have maintained a high level of recruiting due to their evolving business needs and global expansion. Similarly, the booming financial technology (fintech) industry created a number of regulatory and financial crime focused positions in the market. Buy side institutions such as private equity firms and hedge funds remained an attractive platform for sell side candidates. Hiring in the insurance sector has also rapidly grown due to the establishment of the Insurance Authority (IA), a new regulatory body governing the sector.
the larger global private banks.
Private and investment banking in contrast, showed signs of slowing down reflecting the challenging conditions the sector is facing globally as well as in the region. Consumer banking and corporate banking remain relatively stable compared with the previous year.
Private Equity & Hedge Funds
Chinese Financial Institutions Chinese players continue to be the most active in this sector due to the expansion of their capital markets businesses in Hong Kong. Compliance professionals with the ability to demonstrate both commercial acumen alongside experience gained from top tier investment banks, as well as an understanding of Chinese work culture are highly sought after. Chinese brokerage firms will continue to drive demand in the next 12 months in view of the new Managers-in-Charge (MIC) regime across the eight core functions of a licensed corporation, and the determination of many Chinese companies to establish a strong compliance culture enabling them to operate in global markets.
Private Banking and Investment Banking Increasing competition coupled with tightened regulatory compliance has resulted in various European banks pulling out of the Asian private wealth arena, triggering further consolidation of the industry. This has led to a greater supply of private banking candidates appearing in the market, who are now being hired by either Chinese financial institutions or
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Hiring activity in top tier investment banks remained subdued in 2017 largely due to the challenging global investment conditions. The majority of the positions advertised were replacement roles rather than increased headcount. Hiring in AML has, in particular, slowed down significantly in most banks in Hong Kong compared with two to three years ago when demand for AML skills was at its peak. We do, however, see a number of regional and smaller institutions that continue to hire in this space as they tend to face greater AML compliance scrutiny.
There is a continuous demand for senior candidates within the buy side industries notably coming from the global private equity firms and hedge funds. Candidates with a strong SFC background as well as previous relevant industry experience are highly sought after. The competition for talent within this already small candidate pool in Hong Kong is further intensified by the entry of newly set up Chinese hedge funds and private equity houses. Due to the fierce competition for suitably qualified candidates, salary increments for lateral moves could be between 30% and 50% with bonuses ranging from 5 to 10 months.
Insurance Compliance hiring in the insurance sector has been impacted by the establishment of a new regulatory body - the Insurance Authority (IA). The introduction of the IA has brought Hong Kong in line with other jurisdictions that have independent insurance regulators. This will have a significant bearing on hiring as insurance companies and intermediaries are allocating more resources to bolstering departments, ensuring they comprise of individuals with the relevant experience and knowledge to work within the IA’s realm. With this in mind, we expect the insurance sector to be one of the key drivers in compliance hiring in the next 12 months. The growing industry will be an attractive platform for candidates as it provides stability and a healthy long-term growth prospect when compared with traditional investment banks.
Hong Kong Compliance Salary Survey 2018
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Fintech Regulatory flexibility in the fintech industry has meant firms have been able to invest extensively in new businesses and been able to develop and offer a wide range of innovative financial products. The Hong Kong regulators are taking fintech seriously as the Hong Kong Monetary Authority outlined a plan to launch an enhanced fintech supervisory sandbox in early October 2017. Together with the Securities and Futures Commission’s and the Insurance Authority’s new sandboxes, these are all examples of a “safe place” for fintech entities to test products in an otherwise restricted environment without the usual regulatory consequence of pilot activities. With the introduction of tighter regulations in the wider financial services sector, there has been a growing demand for candidates with expertise in both regulatory compliance and financial crime compliance. The majority of the candidate pools for such roles are from large global banks where candidates have good knowledge of complex financial products. Candidates normally receive an uplift of 15- 20% on their base salary and it is not uncommon that senior candidates
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are also given equity as an incentive to attract them to join the business. As the fintech industry continues boom, we anticipate these newly bolstered departments to be one of the key drivers in maintaining growth in the compliance sector in the next 12 months.
Outlook The compliance recruitment market will be relatively buoyant in 2018, with Chinese brokerage firms being particularly active as they continue to work to the Managers-in-Charge (MIC) regime. The insurance sector as well as the fintech industry will continue to hire compliance professionals in both regulatory compliance and FCC compliance in view of overall industry expansion and tighter regulatory requirements. Consolidation and global uncertainties will continue to impact both the wealth management and investment banking industries.
Hong Kong Compliance Salary Survey 2018
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Salary Scales Analyst (1-2 Years)
Associate (3-6 Years)
AVP (6-9 Years)
VP/D (10-14 Years)
ED (15+Years)
300K to 360K
420K to 560K
600K to 900K
1.2M to 1.8M
2.0M to 2.5M
IBD / Research Compliance
300K to 360K
420K to 560K
600K to 900K
1.0M to 1.6M
2.2M to 2.3M
Monitoring & Surveillance
240K to 300K
360K to 480K
500K to 800K
1.0M to 1.4M
1.6M to 2.0M
Control Room Compliance
300K to 360K
420K to 560K
600K to 900K
1.2M to 1.8M
2.0M to 2.3M
Registration & Licensing
180K to 240K
300K to 360K
420K to 720K
900K to 1.3M
1.5M to 1.7M
Regulatory Affairs
180K to 240K
300K to 360K
420K to 720K
900K to 1.3M
1.8M to 2.3M
AML Advisory
300K to 360K
420K to 560K
600K to 900K
1.0M to 1.8M
2.2M to 2.5M
AML Transaction Monitoring
180K to 240K
300K to 360K
420K to 720K
900K to 1.3M
1.6M to 1.8M
Compliance Monitoring/ Testing
180K to 240K
300K to 360K
420K to 700K
900K to 1.3M
1.5M to 2.0M
Retail & Corporate Banking
Analyst (1-2 Years)
Associate (3-6 Years)
AVP (6-9 Years)
VP/D (10-14 Years)
ED (15+Years)
Regulatory Compliance
240K to 300K
360K to 540K
540K to 780K
800K to 1.3M
1.5M to 2.0M
AML Compliance
300K to 360K
420K to 540K
540K to 840K
900K to 1.3M
1.6M to 2.0M
Compliance Monitoring & Testing
180K to 240K
300K to 360K
420K to 780K
800K to 1.2M
1.3M to 1.5M
Private Banking & Wealth Management
Analyst (1-2 Years)
Associate (3-6 Years)
AVP (6-9 Years)
VP/D (10-14 Years)
ED (15+Years)
Regulatory Compliance
300K to 360K
420K to 600K
750K to 900K
1.2M to 1.5M
1.8M to 2.3M
AML Compliance
200K to 300K
350K to 420K
600K to 750K
1.0M to 1.2M
1.4M to 1.8M
Investment Suitability
N/A
400K to 550K
600K to 800K
1.2M to 1.6M
1.4M to 1.8M
Asset Management
Analyst (1-2 Years)
Associate (3-6 Years)
AVP (6-9 Years)
VP/D (10-14 Years)
ED (15+Years)
Business Compliance
240K to 300K
360K to 600K
700K to 850K
1.2M to 1.5M
1.8M to 2.2M
Investment Compliance
240K to 300K
380K to 600K
700K to 850K
1.2M to 1.5M
1.6M to 2.0M
Insurance
Analyst (1-2 Years)
Associate (3-6 Years)
AVP (6-9 Years)
VP/D (10-14 Years)
ED (15+Years)
General Compliance
200K to 240K
360K to 480K
520K to 700K
800K to 1.1M
1.2M to 1.6M
Consultancy Firms
Analyst (1-2 Years)
Associate (3-6 Years)
AVP (6-9 Years)
VP/D (10-14 Years)
ED (15+Years)
Regulatory and Risk
260K to 350K
400K to 500K
560K to 800K
840K to 1.0M
1.1M to 1.5M
Investment Banking Global Markets Compliance (FICC/Equities)
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Hong Kong Compliance Salary Survey 2018
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Contacts James Hickman Managing Partner Corporate Governance & Controls Singapore, Asia Pacific +65 3157 9393 [email protected] James is Co-Founder, Managing Partner and is responsible for the ongoing development of the firm. He has more than fifteen years of human resources experience and has worked with leading professional and financial services sector companies as well as numerous Fortune 500 multinationals. James has extensive market knowledge and experience recruiting senior roles in legal, risk, compliance and financial services. Born in Hong Kong, James holds a Master’s degree in Chinese Politics, Economics and Law from the University of Sydney and a Bachelor’s (Hons) degree in Chinese History of Art and Archaeology from the School of Oriental and African Studies, the University of London. He has also attended BPP Law School in London, the East China University of Politics and Law in Shanghai and has industry qualifications in Human Resources & Training from the University of Hong Kong. James is an MOM registered EA, registration number: R1113864.
Gina Hui Director Risk & Compliance Hong Kong, Asia Pacific +852 2537 0333 [email protected] Gina is the Director of the Risk & Compliance Financial Services team, based in Hong Kong. Gina specialises in the recruitment of compliance professionals in functions covering AML and KYC specialists, advisory compliance for equities, fixed income, corporate finance and control room, investment compliance, core compliance, regulatory affairs & licensing and credit, market & operational risk. She has particularly strong networks in investment banking, asset management, consultancy and consumer banking. Gina has seven years of executive search experience. Prior to her recruitment career she worked for a number of years in accounting with internationally recognised firms in HK. Gina has a Bachelor’s degree in Accounting & Finance from the University of Hong Kong. She speaks English, Cantonese and Mandarin.
www.aquissearch.com
Hong Kong Compliance Salary Survey 2018
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About Aquis Search Aquis Search is a leading regional executive search firm specialising in the corporate affairs, compliance, finance & accounting, human resources & corporate services, investment management, legal, risk management and technology sectors across Asia. We offer clients executive search, research & advisory, search & selection and contract & payroll services. Our clients are members of a global network of prestigious financial institutions, leading UK and US law firms, regional market leaders and Fortune 500 organisations. Clients’ recruitment briefs are successfully met by our team of experienced, multilingual consultants. Professional integrity is the key value on which our client relationships are built and the majority of our business is from personal referral. This is a testament to the high level of professionalism for which we are known. Aquis Search was established in Hong Kong in 2009. Today we operate offices in Beijing, Delhi, Hong Kong, London, Mumbai, Shanghai, Singapore and Taipei.
For further information please contact Aquis Search below or email [email protected] Beijing Level 15, Yintai Office Tower, 2 Jianguomenwai Avenue, Chaoyang District, Beijing, 100022 China +86 10 5387 6100 Delhi Suite 422, Level 4, Rectangle 1, Commercial Complex D-4, Saket, New Delhi-110017, India +91 11 6654 4202 Hong Kong 19/F, Kailey Tower, 16 Stanley Street, Central, Hong Kong +852 2537 0333 London 80-83 Long Lane, London, UK, EC1A 9ET +44 020 3633 0183 Mumbai 315, 3rd Floor, C-Wing, 215 Atrium, Andheri-Kurla Road, Andheri (East), Mumbai 400059 +91 22 6786 6700 Shanghai Room 5, 42/F, No.1717 Wheelock Square, Nanjing West Road, Shanghai 200040, China +86 21 8025 1528 Singapore 11 Collyer Quay, #09-05/06, The Arcade, Singapore 049317 +65 3157 9393 Taipei 37F Taipei 101 Tower, No.7, Sec. 5 Xinyi Road, Taipei 11049, Taiwan +886 2 7732 5778
www.aquissearch.com
Hong Kong Compliance Salary Survey 2018
7
www.aquissearch.com
Introduction The Aquis Search Hong Kong Compliance Salary Survey 2018 details salary information and recruiting trends in the business sectors we cover. Our information has been researched and collated with the help of our clients and candidates and from our working knowledge of the marketplace. Aquis Search consultants have extensive expertise in their practice area and the information reported is based on telephone interviews with hiring managers, HR professionals and in-house recruiters as well as data extracted from our own extensive database and internal research resources. As with all reports that detail salary information and trends, we represent the mainstream view and we recognise there will be individual situations that fall outside the data published. This survey is therefore a guide to general movement in the sector. Please contact us for further information or for clarification on any of the compensation trends detailed in this report.
www.aquissearch.com
Hong Kong Compliance Salary Survey 2018
2
Compliance Market Overview Overall, it was another active year for compliance hiring in Hong Kong as demand for compliance professionals continues. Chinese headquartered companies particularly have maintained a high level of recruiting due to their evolving business needs and global expansion. Similarly, the booming financial technology (fintech) industry created a number of regulatory and financial crime focused positions in the market. Buy side institutions such as private equity firms and hedge funds remained an attractive platform for sell side candidates. Hiring in the insurance sector has also rapidly grown due to the establishment of the Insurance Authority (IA), a new regulatory body governing the sector.
the larger global private banks.
Private and investment banking in contrast, showed signs of slowing down reflecting the challenging conditions the sector is facing globally as well as in the region. Consumer banking and corporate banking remain relatively stable compared with the previous year.
Private Equity & Hedge Funds
Chinese Financial Institutions Chinese players continue to be the most active in this sector due to the expansion of their capital markets businesses in Hong Kong. Compliance professionals with the ability to demonstrate both commercial acumen alongside experience gained from top tier investment banks, as well as an understanding of Chinese work culture are highly sought after. Chinese brokerage firms will continue to drive demand in the next 12 months in view of the new Managers-in-Charge (MIC) regime across the eight core functions of a licensed corporation, and the determination of many Chinese companies to establish a strong compliance culture enabling them to operate in global markets.
Private Banking and Investment Banking Increasing competition coupled with tightened regulatory compliance has resulted in various European banks pulling out of the Asian private wealth arena, triggering further consolidation of the industry. This has led to a greater supply of private banking candidates appearing in the market, who are now being hired by either Chinese financial institutions or
www.aquissearch.com
Hiring activity in top tier investment banks remained subdued in 2017 largely due to the challenging global investment conditions. The majority of the positions advertised were replacement roles rather than increased headcount. Hiring in AML has, in particular, slowed down significantly in most banks in Hong Kong compared with two to three years ago when demand for AML skills was at its peak. We do, however, see a number of regional and smaller institutions that continue to hire in this space as they tend to face greater AML compliance scrutiny.
There is a continuous demand for senior candidates within the buy side industries notably coming from the global private equity firms and hedge funds. Candidates with a strong SFC background as well as previous relevant industry experience are highly sought after. The competition for talent within this already small candidate pool in Hong Kong is further intensified by the entry of newly set up Chinese hedge funds and private equity houses. Due to the fierce competition for suitably qualified candidates, salary increments for lateral moves could be between 30% and 50% with bonuses ranging from 5 to 10 months.
Insurance Compliance hiring in the insurance sector has been impacted by the establishment of a new regulatory body - the Insurance Authority (IA). The introduction of the IA has brought Hong Kong in line with other jurisdictions that have independent insurance regulators. This will have a significant bearing on hiring as insurance companies and intermediaries are allocating more resources to bolstering departments, ensuring they comprise of individuals with the relevant experience and knowledge to work within the IA’s realm. With this in mind, we expect the insurance sector to be one of the key drivers in compliance hiring in the next 12 months. The growing industry will be an attractive platform for candidates as it provides stability and a healthy long-term growth prospect when compared with traditional investment banks.
Hong Kong Compliance Salary Survey 2018
3
Fintech Regulatory flexibility in the fintech industry has meant firms have been able to invest extensively in new businesses and been able to develop and offer a wide range of innovative financial products. The Hong Kong regulators are taking fintech seriously as the Hong Kong Monetary Authority outlined a plan to launch an enhanced fintech supervisory sandbox in early October 2017. Together with the Securities and Futures Commission’s and the Insurance Authority’s new sandboxes, these are all examples of a “safe place” for fintech entities to test products in an otherwise restricted environment without the usual regulatory consequence of pilot activities. With the introduction of tighter regulations in the wider financial services sector, there has been a growing demand for candidates with expertise in both regulatory compliance and financial crime compliance. The majority of the candidate pools for such roles are from large global banks where candidates have good knowledge of complex financial products. Candidates normally receive an uplift of 15- 20% on their base salary and it is not uncommon that senior candidates
www.aquissearch.com
are also given equity as an incentive to attract them to join the business. As the fintech industry continues boom, we anticipate these newly bolstered departments to be one of the key drivers in maintaining growth in the compliance sector in the next 12 months.
Outlook The compliance recruitment market will be relatively buoyant in 2018, with Chinese brokerage firms being particularly active as they continue to work to the Managers-in-Charge (MIC) regime. The insurance sector as well as the fintech industry will continue to hire compliance professionals in both regulatory compliance and FCC compliance in view of overall industry expansion and tighter regulatory requirements. Consolidation and global uncertainties will continue to impact both the wealth management and investment banking industries.
Hong Kong Compliance Salary Survey 2018
4
Salary Scales Analyst (1-2 Years)
Associate (3-6 Years)
AVP (6-9 Years)
VP/D (10-14 Years)
ED (15+Years)
300K to 360K
420K to 560K
600K to 900K
1.2M to 1.8M
2.0M to 2.5M
IBD / Research Compliance
300K to 360K
420K to 560K
600K to 900K
1.0M to 1.6M
2.2M to 2.3M
Monitoring & Surveillance
240K to 300K
360K to 480K
500K to 800K
1.0M to 1.4M
1.6M to 2.0M
Control Room Compliance
300K to 360K
420K to 560K
600K to 900K
1.2M to 1.8M
2.0M to 2.3M
Registration & Licensing
180K to 240K
300K to 360K
420K to 720K
900K to 1.3M
1.5M to 1.7M
Regulatory Affairs
180K to 240K
300K to 360K
420K to 720K
900K to 1.3M
1.8M to 2.3M
AML Advisory
300K to 360K
420K to 560K
600K to 900K
1.0M to 1.8M
2.2M to 2.5M
AML Transaction Monitoring
180K to 240K
300K to 360K
420K to 720K
900K to 1.3M
1.6M to 1.8M
Compliance Monitoring/ Testing
180K to 240K
300K to 360K
420K to 700K
900K to 1.3M
1.5M to 2.0M
Retail & Corporate Banking
Analyst (1-2 Years)
Associate (3-6 Years)
AVP (6-9 Years)
VP/D (10-14 Years)
ED (15+Years)
Regulatory Compliance
240K to 300K
360K to 540K
540K to 780K
800K to 1.3M
1.5M to 2.0M
AML Compliance
300K to 360K
420K to 540K
540K to 840K
900K to 1.3M
1.6M to 2.0M
Compliance Monitoring & Testing
180K to 240K
300K to 360K
420K to 780K
800K to 1.2M
1.3M to 1.5M
Private Banking & Wealth Management
Analyst (1-2 Years)
Associate (3-6 Years)
AVP (6-9 Years)
VP/D (10-14 Years)
ED (15+Years)
Regulatory Compliance
300K to 360K
420K to 600K
750K to 900K
1.2M to 1.5M
1.8M to 2.3M
AML Compliance
200K to 300K
350K to 420K
600K to 750K
1.0M to 1.2M
1.4M to 1.8M
Investment Suitability
N/A
400K to 550K
600K to 800K
1.2M to 1.6M
1.4M to 1.8M
Asset Management
Analyst (1-2 Years)
Associate (3-6 Years)
AVP (6-9 Years)
VP/D (10-14 Years)
ED (15+Years)
Business Compliance
240K to 300K
360K to 600K
700K to 850K
1.2M to 1.5M
1.8M to 2.2M
Investment Compliance
240K to 300K
380K to 600K
700K to 850K
1.2M to 1.5M
1.6M to 2.0M
Insurance
Analyst (1-2 Years)
Associate (3-6 Years)
AVP (6-9 Years)
VP/D (10-14 Years)
ED (15+Years)
General Compliance
200K to 240K
360K to 480K
520K to 700K
800K to 1.1M
1.2M to 1.6M
Consultancy Firms
Analyst (1-2 Years)
Associate (3-6 Years)
AVP (6-9 Years)
VP/D (10-14 Years)
ED (15+Years)
Regulatory and Risk
260K to 350K
400K to 500K
560K to 800K
840K to 1.0M
1.1M to 1.5M
Investment Banking Global Markets Compliance (FICC/Equities)
www.aquissearch.com
Hong Kong Compliance Salary Survey 2018
5
Contacts James Hickman Managing Partner Corporate Governance & Controls Singapore, Asia Pacific +65 3157 9393 [email protected] James is Co-Founder, Managing Partner and is responsible for the ongoing development of the firm. He has more than fifteen years of human resources experience and has worked with leading professional and financial services sector companies as well as numerous Fortune 500 multinationals. James has extensive market knowledge and experience recruiting senior roles in legal, risk, compliance and financial services. Born in Hong Kong, James holds a Master’s degree in Chinese Politics, Economics and Law from the University of Sydney and a Bachelor’s (Hons) degree in Chinese History of Art and Archaeology from the School of Oriental and African Studies, the University of London. He has also attended BPP Law School in London, the East China University of Politics and Law in Shanghai and has industry qualifications in Human Resources & Training from the University of Hong Kong. James is an MOM registered EA, registration number: R1113864.
Gina Hui Director Risk & Compliance Hong Kong, Asia Pacific +852 2537 0333 [email protected] Gina is the Director of the Risk & Compliance Financial Services team, based in Hong Kong. Gina specialises in the recruitment of compliance professionals in functions covering AML and KYC specialists, advisory compliance for equities, fixed income, corporate finance and control room, investment compliance, core compliance, regulatory affairs & licensing and credit, market & operational risk. She has particularly strong networks in investment banking, asset management, consultancy and consumer banking. Gina has seven years of executive search experience. Prior to her recruitment career she worked for a number of years in accounting with internationally recognised firms in HK. Gina has a Bachelor’s degree in Accounting & Finance from the University of Hong Kong. She speaks English, Cantonese and Mandarin.
www.aquissearch.com
Hong Kong Compliance Salary Survey 2018
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About Aquis Search Aquis Search is a leading regional executive search firm specialising in the corporate affairs, compliance, finance & accounting, human resources & corporate services, investment management, legal, risk management and technology sectors across Asia. We offer clients executive search, research & advisory, search & selection and contract & payroll services. Our clients are members of a global network of prestigious financial institutions, leading UK and US law firms, regional market leaders and Fortune 500 organisations. Clients’ recruitment briefs are successfully met by our team of experienced, multilingual consultants. Professional integrity is the key value on which our client relationships are built and the majority of our business is from personal referral. This is a testament to the high level of professionalism for which we are known. Aquis Search was established in Hong Kong in 2009. Today we operate offices in Beijing, Delhi, Hong Kong, London, Mumbai, Shanghai, Singapore and Taipei.
For further information please contact Aquis Search below or email [email protected] Beijing Level 15, Yintai Office Tower, 2 Jianguomenwai Avenue, Chaoyang District, Beijing, 100022 China +86 10 5387 6100 Delhi Suite 422, Level 4, Rectangle 1, Commercial Complex D-4, Saket, New Delhi-110017, India +91 11 6654 4202 Hong Kong 19/F, Kailey Tower, 16 Stanley Street, Central, Hong Kong +852 2537 0333 London 80-83 Long Lane, London, UK, EC1A 9ET +44 020 3633 0183 Mumbai 315, 3rd Floor, C-Wing, 215 Atrium, Andheri-Kurla Road, Andheri (East), Mumbai 400059 +91 22 6786 6700 Shanghai Room 5, 42/F, No.1717 Wheelock Square, Nanjing West Road, Shanghai 200040, China +86 21 8025 1528 Singapore 11 Collyer Quay, #09-05/06, The Arcade, Singapore 049317 +65 3157 9393 Taipei 37F Taipei 101 Tower, No.7, Sec. 5 Xinyi Road, Taipei 11049, Taiwan +886 2 7732 5778
www.aquissearch.com
Hong Kong Compliance Salary Survey 2018
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