Charlie Saker, one of our Risk & Compliance Consultants, explores the new implementations and trends for 2019 across the financial services industry.
In the 10 years since the Financial Crisis, there has clearly been a marked increase in the number of my clients who have implemented more resilient policies and increased regulations across Risk and Compliance. However, in 2019, we will see fewer new regulations as those that have been introduced in the last 2 or 3 years are being stress tested and scrutinised. These companies are returning to Business As Usual rather than introducing new big pieces of legislation such as Mifid II or GDPR as we saw last year
So whatís next in 2019?
The key features Iím seeing through the industry and my clients are three fold:
Financial Crime and Anti-Money Laundering (AML) schemes are being given more awareness in clientsí organisations and as such, requests for experienced financial crime professionals are at their highest ever. Additionally, my clients are already facing challenges with rapidly changing tech in the likes of automated AML and crypto assets.
A future one-to-watch is ESG and Responsible Investing. The growth of this market as a profitable and desirable sector to be involved in has meant a marked increase in the need for these skills at both a junior and senior level. Since this is a relatively new domain that has experienced a sharp increase in demand, there is already a shortage of skilled applicants and the salary demands reflect this.
Similarly, the PRAís advice on how organisations manage the financial risks associated with Climate Change is still under review, compliance is about to become stricter than ever.
The ĎBí word
In March 2019, the UK will leave the EU. Whilst, at the time of writing, there is still massive uncertainty about the process and whether the UK will leave with a deal, it canít be ignored.
Due to this uncertainty, the majority of firms are preparing their businesses for a no-deal Brexit and have put in place processes that will likely stop any significant disasters. But with the indecision of Brexit lingering, we will only know if the processes pay off as and when they can be tested.
On top of all this regulation testing, demand has increased hugely for sectors such as Technology and Data governance, Cryptocurrency, FinTech, and Cyber Security and shows no sign of slowing down.
All in all, 2019 will see recent regulations being tested rather than newly implemented as we try to keep up with new technological and social demands. Judging from the requests Iíve received already this year, this trend will not be going away any time soon.
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