Why are banks expanding their regulatory teams? As the economy continues to recover following the financial crisis, firms are increasing the size of their teams in light of regulatory changes that have been enforced to prevent another downturn. This means that compliance professionals are in increasing demand, and if you have regulatory experience this could be the perfect time to look for your next opportunity.
Increasing regulatory pressures
Recent legislation has exposed a number of operational and behavioural flaws within banking that had grown throughout the age of deregulation, many of which stemmed from compliance breakdowns.
"Billions of pounds in fines have been imposed on many of the top tier banks, compelling many to grow their teams as they rush to ensure they are compliant. This means that there is a shortage of compliance change professionals," says James Murray, Associate Director at Robert Walters.
Who is hiring?
Global banks have announced huge plans to hire compliance change professionals. For example, JP Morgan has announced its plans to spend $4b and commit to hiring 5,000 extra employees this year to improve its compliance effort.
Meanwhile, HSBC continues to run Global Standards – the biggest programme of change in banking – and is recruiting 3,000 new compliance officers, following a record $1.9b fine after an investigation into money laundering.
Elsewhere BNP Paribas was fined over $9b for violating US sanctions against Iran and Cuba and is attempting to build a strong compliance team to avoid any further violations of legislation and subsequent sanctions. Lloyds banking group is investing heavily in compliance change programmes centred around EMIR and Dodd Frank and the forthcoming Mifid II EU directive.
What has changed in regulation?
There has been a shift in the regulatory landscape that has put pressure on banks to prioritise compliance:
- CASS: this was created by the FCA as a result of the Lehman Brothers case. With confusion over the ownership of assets, it is now essential that banks comply with the CASS regulation. Barclays was fined in relation to non-compliance with CASS recently
- FATCA: US legislation that requires banks to collect information on customers in the US to ensure they are not dodging taxes
- Anti-money laundering is a key priority, along with sanctions/financial crime
- Know your client (KYC): Changes the way banks reference-check their clients before taking them on
- Customer Due Diligence (CDD): Continued performance of checks after on-boarding
- Mifid II: A forthcoming EU directive aimed at making markets more efficient and transparent
Billions of pounds in fines have been imposed on many of the top tier banks, compelling many to grow their teams as they rush to ensure they are compliant.
Are you ready for your next opportunity? Check the latest compliance change jobs available from Robert Walters.
Do you stand out from your competitors when interviewing? Take a look at our tips for interviewing for project and change management roles.