Fund houses rush to acquire talent as tightening of compliance rules weighs

New hires demand compensation beyond standard hikes to make up for impact on take-home pay due to the skin-in-the-game norms; seasoned professionals quit in droves

Amid tighter rules for staff in the mutual fund (MF) industry, some fund houses are caught up in a talent acquisition whirlwind, with new hires demanding compensation over and above the standard hikes to make up for the impact on take-home salaries due to skin-in-the-game norms, confirmed senior executives from four fund houses.

In recent years, the Securities and Exchange Board of India (Sebi) has tightened compliance and disclosures on asset management companies (AMCs), along with staff. At the same time, the markets regulator has pushed the industry to bring down the cost of investing. 

Under the skin-in-the-game norms, Sebi