Financial Services Faces Compliance Staff Shortage - And Rising Regulatory Pressure

New research published by Thomson Reuters last week found that 74% of Financial Services firms are expecting to see an increased regulatory burden over the next twelve months. Despite anticipating greater regulatory workloads, 65% of businesses in the UK said they think their Compliance teams will not see an increase in headcount and only 35% said they expected to expand the number of Compliance staff.

Almost half of the respondents (44%) said that “addressing concerns of regulators” and “implementing a demonstrably compliant culture” was the biggest demand on their compliance resources, second only to cyber resilience (55%). These are crucial areas of work, where failure can incur huge fines and lasting reputational damage. Even just looking at the regulatory developments we already know are coming up, there’s a lot of work needed for many firms to be ready for the new Consumer Duty rules coming into effect next year. And yet, even facing ever-increasing scrutiny on Conduct and Culture with the associated threat of fines and section 166 notices, right now Compliance departments are not proactively bringing in exceptional talent and expanding teams.?

Why aren’t these organisations scaling up their Compliance functions in line with a predicted increase in activity??

There’s a variety of reasons cited, with two-thirds of respondents highlighting the rising cost of senior Compliance officers due to skills shortage and the highly competitive labour market. 45% of firms also said they expected the “personal liability” of professionals to increase over the next year, following the prevailing regulatory trend, which could push costs up further if fewer more junior professionals want to step up into these positions. We’re in an extremely candidate-led market during a time of general economic uncertainty, leaving strong candidates with few reasons to leave their current roles. All of which means organisations are going to need to actively compete to get the people they need – and that need is going to be vital in the coming months.

With pressure mounting on Compliance departments, it will be incredibly important to stay ahead of the competition to attract the best people. If your organisation just places an advert and hopes for the best, you may get strong candidates but those same people will also be applying for roles with your rivals and will be able to take their pick of which they want to pursue. Businesses need to shift into this candidate-led mindset, and should strongly consider engaging a specialist recruiter who will be able to identify the very best talent for your individual requirements.

If you’re concerned about the regulatory burden on your business, Kind Consultancy can help. We utilise a truly consultative approach to build plans together with our clients for their Governance, Risk, Compliance & Financial Crime resource needs. Whether you need a new: Head of Compliance to guide your department, an interim Manager with specialist Conduct knowledge or a full team of Analysts on a contract basis to complete a project by a firm deadline, we can help you find the professionals you need. Kind regularly works with some of the best Compliance talent in the UK, and candidates respect our industry knowledge in turn – all of which means, we can connect you to the best person for your situation, and in many cases that will be someone who would not be accessible through traditional recruitment channels. We also make sure that you’re talking to candidates whose own professional goals and interests align with both the specific role you’re recruiting for, and the bigger picture plans of the organisation.?

By crafting a unique, individual appeal to these professionals with highly specialist experience, we can make sure your business stays on top of mounting regulatory requirements - and stays ahead of the competition.

For a confidential conversation, contact me on [email protected] or 0121 643 2100.