Cork: an International Financial Services Hub

SOURCING YOUR MOST VALUABLE ASSET
MARKET INTELLIGENCE REPORT: IFS SECTOR CORK
AUGUST 2017
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BENEFITS OF CORK

No 1 for Business Friendliness / 542,000 population, only 2.5 hours from Dublin, direct access to EU markets, Ideally situated between USA and Asia-Pacific markets, 50% of population under 35 years of age / Tier 1 Connectivity – USA – UK 100 Gbit/s fibre network via Cork, New 10 MW co-location data centre development / Big on life – Compact city-living, Spectacular rural and coastal environment, Festival city-region, Food capital of Ireland, Welcoming, cosmopolitan city
Office Rental – Highly competitive rates, In excess of 1 million sq. ft. of office space coming on-stream in Cork in the next 18 months, Gold and Platinum offices, Innovative co-working spaces / 50 destinations served from Cork International Airport – 9 flights daily to London, Regular to hub airports of Amsterdam, Paris and Manchester, Direct flights to East Coast USA / Research Excellence – Financial Service Governance, Risk and Compliance Technology Centre, Financial Services Innovation Centre, Centre for Research, Boole Business Labs

CORK IN NUMBERS

30% plus lower residential costs in Cork compared to Dublin / The cost of living is 23% lower in Cork based on childcare and rental costs only. / 51,578 : Number of people in Cork who speak a language other than English / Irish (CSO 2011) / Employer costs (pay and property) are 14% lower in Cork for a 20,000 sq.ft office with 200 employees compared to Dublin.
Cork has an impressive record in attracting industry, both FDI and indigenous. Cork is home to household names on a global basis such as Apple, EMC, Johnson & Johnson, Boston Scientific, Stryker, Pepsi, Lilly to name a few.
(Source: PwC Report “Why Cork? Why Now?”) / 60% of people get to work within 30 minutes / Cork has aproven ability to attract and build industry “hubs”, such as Pharmaceutical, Biotechnology, Cyber security and Financial Services.

CORK: AN INTERNATIONAL FINANCIAL SERVICES HUB

• As a globally renowned centre for specialist International Financial Services (IFS), Ireland is home to over 400 IFS companies of which over 200 are foreign owned, with a further 200 indigenous companies providing employment for over 40,000 people. As Ireland's second largest FS hub, Cork City offers IFS companies a real competitive solution. Connecting Cork, a collaboration between local stakeholders and industry leaders that is growing Cork's international profile, are inviting businesses to choose the southern capital as their hub for IFS.
• University College Cork and Cork Institute of Technology provide highly-skilled, industry-ready graduates with over 30 finance and business related under graduate and post graduate courses held annually, catering for approximately 4,000 students.

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• A recent survey conducted in March 2017 of IFS companies in the Cork area, undertaken by Cork University Business School found that 100% of respondents rated Cork's educational institutions and skilled workforce as good or very good. 95% agree that Cork is a competitive location for IFS industry, 100% agree that Cork has the ability to attract and retain top international talent, and 95% agree that Cork has a superior work life balance to other locations.
• In April of this year, it was announced that UCC are looking at Cork sites for a new UCC hub to accommodate an expanded Business School and many thousands of UCC students. Aiming to begin construction in 2018/19 to be ready for incoming students in 2020/21. UCC has said that it will be one of the country’s largest academic buildings, and aims to build flagship, world-class school for 4,500 students initially across UCC’s related business disciplines and departments.

DEVELOPING LOCAL FINANCIAL SERVICES TALENT

Sample of Relevant Courses Offered

• Accounting, Business Information and Analytics Systems, Commerce, Commerce International, Finance, Economics, Economics for Business Practice, Finance-Asset Management,
• Finance - Corporate Finance, Financial Economics
• Information Systems for Business Performance and Risk Management, Management and Marketing, Marketing Information and Managerial Accounting

/ Sample of Relevant Courses Offered

• Business and Management, Marketing, Business Studies, Accounting, Business Administration, Business Information Systems, Management

/ Sample of Relevant Courses Offered

• Accounting and Finance, Business Studies, HRM, Marketing Management, Marketing and Digital Strategy

Third level institutions in Cork, Limerick, Tralee and Waterford (all within commuting distance) have more than 66,000 students enrolled. University College Cork and Cork Institute of technology have over 30,000 students combined, producing a stream of highly qualified graduates across all fields.

AVAILABILITY OF FINANCIAL SERVICES TALENT CORK

Positions / Number of candidates in the Cork market*
Fund Administration / 3,064
Fund Accounting / 3,372
Credit Analyst / 3,454
Risk Manager / 2,899
Transfer Agency Manager / 1,283
Compliance Manager / 1,202
Trustee Manager / 2,119
Audit Manager / 2,775
Corporate Recovery Manager / 641

*Information sourced from Morgan McKinley global database

BASIC SALARY COMPARISON BY LOCATION – FUNDS

Job Title / Dublin € / Cork € / London €* / Frankfurt €
Fund Accountant (1-2 years) / 26,000 – 30,000 / 23,000 – 27,000 / 40,000 – 50,000 / 30,000 – 45,000
Fund Accountant (2-5 years) / 30,000 – 35,000 / 27,000 – 35,000 / 50,000 – 74,000 / 45,000 – 55,000
Fund Accountant (5+ years) / 35,000 + / 35,000 + / 74,000 – 86,000 / 55,000 – 70,000
Fund Supervisor / 45,000 – 60,000 / 45,000 – 50,000 / 74,000 – 86,000 / 55,000 - 65,000
Fund Manager / 50,000 + / 50,000 + / 86,000 – 171,000 / 60,000 – 100,000
Financial Reporting – Funds / 40,000 – 70,000 / 35,000 – 50,000 / 57,000 – 114,000 / 45,000 – 90,000
Transfer Agent / 26,000 – 38,000 / 23,000 – 35,000 / 34,000 – 57,000 / 40,000 – 50,000

*Currency Conversion 1 GBP = 1.14180 EUR as of 19/06/2017

BASIC SALARY COMPARISON BY LOCATION – BANKING

Job Title / Dublin € / Cork € / London €* / Frankfurt €
Bank Officer / 30,000 – 50,000 / 25,000 – 45,000 / 40,000 – 69,000 / 32,000 – 55,000
Credit Analyst / 35,000 – 50,000 / 27,000 – 45,000 / 46,000 – 80,000 / 35,000 – 70,000
Branch Manager / 65,000 – 90,000 / 60,000 – 85,000 / 74,000 – 114,000 / 70,000 – 100,000
Financial Adviser / 35,000 – 55,000 / 32,000 – 50,000 / 46,000 – 91,000 / 40,000 – 80,000
Wealth Manager / 50,000 – 100,000 / 45,000 – 80,000 / 69,000 – 114,000 / 60,000 – 100,000

*Currency Conversion 1 GBP = 1.14180 EUR as of 19/06/2017

BASIC SALARY COMPARISON BY LOCATION – INSURANCE

Job Title / Dublin € / Cork € / London €* / Frankfurt €
Insurance Administration / 25,000 – 35,000 / 23,000 – 32,000 / 29,000 – 46,000 / 25,000 – 40,000
General Insurance account handler / 30,000 – 40,000 / 25,000 – 32,000 / 34,000 – 57,000 / 30,000 – 45,000
Commercial Insurance account handler / 32,000 – 60,000 / 28,000 – 45,000 / 40,000 – 69,000 / 35,000 – 45,000
Business Development Manager / 35,000 – 60,000 / 35,000 – 55,000 / 40,000 – 69,000 / 55,000 – 110,000
Compliance Officer / 30,000 – 60,000 / 30,000 – 50,000 / 57,000 – 80,000 / 45,000 – 90,000
Compliance Manager / 60,000 – 120,000 / 60,000 – 120,000 / 80,000 – 114,000 / 65,000 – 110,000
Underwriter / 32,000 – 50,000 / 30,000 – 45,000 / 40,000 – 80,000 / 45,000 – 90,000
Underwriting Manager / 55,000 – 120,000 / 50,000 – 100,000 / 57,000 – 148,000 / 70,000 – 150,000
Broker Consultant / 40,000 – 70,000 / 35,000 – 60,000 / 51,000 – 114,000 / 45,000 – 90,000

*Currency Conversion 1 GBP = 1.14180 EUR as of 19/06/2017

FULLY LOADED SALARY COMPARISON– FUNDS

Job Title / Dublin € / Cork € / London €* / Frankfurt €
Fund Accountant (1-2 years) / 28,795 – 33,225 / 25,473 – 29,903 / 45,975 – 57,469 / 36,300 – 54,450
Fund Accountant (2-5 years) / 33,225 – 38,763 / 29,903 – 38,763 / 57,469 – 85,054 / 54,450 – 66,550
Fund Accountant (5+ years) / 38,763 + / 38,763 + / 85,054 – 98,847 / 66,550 – 84,700
Fund Supervisor / 49,838 – 66,450 / 49,838 – 55,375 / 85,054 – 98,847 / 66,550 – 78,650
Fund Manager / 55,375 + / 55,375 + / 98,847 – 196,544 / 72,600 – 121,000
Financial Reporting – Funds / 44,300 – 77,525 / 38,763 – 55,375 / 65,515 – 131,029 / 54,450 – 108,900
Transfer Agent / 28,795 – 42,085 / 25,473 – 38,763 / 39,079 – 65,515 / 48,400 – 60,500

Dublin: Fully Loaded Statutory Costs include Employer PRSI of 10.75%

London: Fully Loaded Statutory Cost include Employer Social Security of 13.8% and Pension Auto Enrolment of 1% Employer contribution

Frankfurt: Fully Loaded Statutory Cost Include Employment Social Security of 21%

*Currency Conversion 1 GBP = 1.14180 EUR as of 19/06/2017

FULLY LOADED SALARY COMPARISON– BANKING

Job Title / Dublin € / Cork € / London €* / Frankfurt €
Bank Officer / 33,225 – 55,375 / 29,903 – 49,838 / 45,975 – 79,307 / 38,720 – 66,550
Credit Analyst / 38,763 – 55,375 / 33,225 – 49,838 / 52,871 – 91,950 / 42,350 – 84,700
Branch Manager / 71,988 – 99,675 / 66,450 – 94,138 / 85,054 – 131,029 / 84,700 – 121,000
Financial Adviser / 38,763 – 60,913 / 35,440 – 55,375 / 52,871 – 104,594 / 48,400 – 96,800
Wealth Manager / 55,375 – 110,750 / 49,838 – 88,600 / 49,307 – 131,029 / 72,600 – 121,000

Dublin: Fully Loaded Statutory Costs include Employer PRSI of 10.75%

London: Fully Loaded Statutory Cost include Employer Social Security of 13.8% and Pension Auto Enrolment of 1% Employer contribution

Frankfurt: Fully Loaded Statutory Cost Include Employment Social Security of 21%

*Currency Conversion 1 GBP = 1.14180 EUR as of 19/06/2017

FULLY LOADED SALARY COMPARISON– INSURANCE

Job Title / Dublin € / Cork € / London €* / Frankfurt €
Insurance Administration / 27,688 – 38,763 / 25,473 – 35,440 / 33,332 – 52,871 / 30,250 – 48,400
General Insurance account handler / 33,225 – 44,300 / 27,688 – 35,440 / 39,079 – 65,515 / 36,300 – 54,450
Commercial Insurance account handler / 35,440 – 66,450 / 31,010 – 49,838 / 45,975 – 79,307 / 42,350 – 54,450
Business Development Manager / 38,763 – 66,450 / 38,763 – 60,913 / 45,975 – 79,307 / 66,550 – 133,100
Compliance Officer / 33,225 – 66,450 / 33,225 – 55,375 / 65,515 – 91,950 / 54,450 – 108,900
Compliance Manager / 66,450 – 132,900 / 66,450 – 132,900 / 91,950 – 131,029 / 78,650 – 133,100
Underwriter / 35,440 – 55,375 / 33,225 – 49,838 / 45,975 – 91,950 / 54,450 – 108,900
Underwriting Manager / 60,913 – 132,900 / 55,375 – 110,750 / 65,515 – 170,108 / 84,700 – 181,500
Broker Consultant / 44,300 – 77,525 / 38,763 – 66,450 / 58,618 – 131,029 / 54,450 – 108,900

Dublin: Fully Loaded Statutory Costs include Employer PRSI of 10.75%

London: Fully Loaded Statutory Cost include Employer Social Security of 13.8% and Pension Auto Enrolment of 1% Employer contribution

Frankfurt: Fully Loaded Statutory Cost Include Employment Social Security of 21%

*Currency Conversion 1 GBP = 1.14180 EUR as of 19/06/2017

LABOUR MARKET INFORMATION

Labour Operating Environment / Ireland / UK / Germany
Employer Social Taxes / 10.75% / 13.8% / 21%
Statutory Annual Leave (Days) / 20 annual leave days plus 9 paid public holidays / 20 annual leave days plus 8 paid public holidays / 20 annual leave days plus 9 public holidays
Statutory Pension Contributions / Not Statutory / Statutory at 2% contributions made by the employee (0.8%), the employer (1.0%), and the government (0.2%) / Paid by social security
Statutory Healthcare Contributions / Not Statutory / Statutory Healthcare applies, but is funded through the general taxation system / Paid by social security (7.3% employer cost and 7.3-8.5% employee cost)
Sick Leave / Not Statutory / Statutory up to 28 weeks paid byemployer / Statutory up to 6 weeks paid byemployer.

LABOUR MARKET INFORMATION (contd)

Labour Operating Environment / Ireland / UK / Germany
Min. Notice Period / 1 week: <2 years
2 weeks: 2-5 years
4 weeks: 5-10 years / < 2 years: 1 week
> 2 years: 2 weeks
+1 week for each complete year (up to a 12yrs) / < 2 years: 4 weeks prior to either the 15th or the last day of the next month;
2 - 4 years: 1 month prior to the last day of the next month;
5 to 7 years: 2 months prior to last day of the next month;
8 to 9 years: 3 months prior to last day of the next month
Note this operates on a tiered scale and exceeds 20+ years
Maternity Leave / 26 weeks statutory pay from the State. A further 16 weeks unpaid leave can be taken / 39 weeks of statutory pay is provided by the employer / 14 weeks. An additional 4 weeks for premature birth, paid by employer
Paternity Leave / StatutoryPaternity Leave:
Up to 2 weeks paid by State. / Statutory
Paternity Leave: Up to 2 weeks / Statutory parental leave applies until a child turns three. Employees are not obliged to work during this period. Their job remains open and contract cannot be terminated by employer. Parental leave can be taken by the mother and father individually or jointly. Paid by state benefits.

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