The US market for FIG jobs is scorching hot. Recruiters say the London market is slightly more temperate.

August has proven anything but quiet when it comes to financial institutions group (FIG) hiring in the US. So far this month Morgan Stanley has announced the addition of five managing directors to its financial institutions group (FIG) team, of whom four will be US focused, while HSBC has appointed two co-heads to its new American FIG group. Credit Suisse added a new head of US FIG in June.

The rush of FIG activity is not without reason. At nearly $1.8bn globally, fees earned from advising on financial services deals exceeded those from all other industries in the first six months of this year, according to information provider Thomson Financial.

In Europe, financials were the second most active sector for M&A in the first six months of 2006, with power ranking in first place. However, recruiters say the sector is busy rather than frantic.

“FIG has definitely been one of the more active areas,” says an M&A consultant at one London search firm. “But we haven’t seen the same level of activity as the US.”

Recruiter Badenoch & Clark has two FIG vacancies advertised at the moment, but Richard Pallister, a manager in the financial services division, says natural resources is the more active area of recruitment in the City.

Dresdner Kleinwort and Merrill Lynch are among the banks currently looking for analysts for London-based FIG M&A teams. Morgan Stanley, Goldman Sachs and Merrill reportedly made vice president and managing director-level hires earlier in the year.

Dresdner added two debt-focused bankers to its London FIG group in early August. Banks such as Deutsche, UBS and Dresdner have moved to create combined FIG groups offering M&A and equity advice, as well as debt solutions.

“Most London FIG hiring has already been done this year,” says the search consultant. “It’s too early to say whether it will pick up after bonuses have been paid in 2006.”