Spotlight on London: Compliance, Retail Banking and the FSA Split

One of the biggest challenges facing the retail banking sector in London over the coming months is the recent split of the Financial Services Authority (FSA) and the impact that this is likely to have on compliance operations.

Having already undergone significant restructuring in response to the regulatory initiatives imposed by the FSA, the retail banking industry has been bracing for another major shift with regard to its compliance requirements. This is largely due to the FSA splitting into two separate entities: the Prudential Regulation Authority and the Financial Conduct Authority.

 Compliance skills in demand

With two distinct organisations taking over the monitoring of regulatory procedures, different reporting skills are expected to be required for each. Furthermore, it is anticipated that both entities will take a more intrusive approach to enforcing compliance requirements in light of the banking crisis. Consequentially, as these organisations continue to adapt to meet the demands of both regulatory departments, compliance officers are likely to be very much in demand throughout this sector.

In addition, 2012 placed something of a spotlight on the financial risks associated with money laundering and many retail banks have sought to employ compliance professionals to review the controls which they have in place. As a result, the contract market, in particular, has grown significantly in response to the needs of various anti-money laundering projects.

 Graduate recruitment is on the rise

With tight compliance controls only set to become tighter following the FSA split, the demand for compliance professionals within the retail banking sector has also sparked a new trend in graduate recruitment. Whereas compliance has previously been a role which many candidates have fallen into whilst building their career within the finance industry, graduates are now actively seeking out compliance as a profession in its own right. Furthermore, those who graduate from university with legal qualifications are more frequently looking to join retail banks within their compliance departments.

As compliance roles continue to grow and evolve throughout 2013, retail banks are likely to be looking to recruit experts in policy, product compliance advisory and anti-money laundering procedures.

Will the banking crisis create a long term requirement for compliance specialists?

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Author

Geoff Fawcett

Director, Hays UK

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Geoff Fawcett has been in the recruitment industry for over 16 years. He is currently responsible for Hays Financial Markets, which provides an integrated recruitment solution to London based Banking & Financial Services organisations. Specialist divisions include Finance, Operations, HR, Marketing, Purchasing, Secretarial, Risk & Compliance, Front Office, Finance Technology and Executive with in excess of 100 consultants.