2018, the Year of Compliance - Viewpoint - careers advice blog Viewpoint careers advice blog

2018, the ‘Year of Compliance’ - Viewpoint - careers advice blog In the financial sector, 2018 will likely be remembered across the globe as ‘the year of compliance’ after the launch of the second iteration of the Markets in Financial Instruments Directive’ EU framework (MiFID II) in January, followed by the EU’s General Data Protection Regulation (GDPR) in May. Add to this a string of national initiatives, such as the review of the financial sector by the newly-formed Banking Royal Commission in Australia, and the financial industry has never been under such scrutiny and accountability. However, there is an opportunity in every crisis, and candidates with a compliance background are in high demand with attractive packages on offer. A raft of new regulation The financial sector globally is currently being hit by wave upon wave of new regulations. After Basel 4, the Dodd-Frank Act and the European Market Infrastructure Regulation (EMIR),  MiFID II came into effect in January. Its objective is to prevent conflicts of interest in the sector by requiring asset managers to distinguish between trading commissions and investment research fees. Furthermore, the sector was hit by GDPR this spring, which is another, far-reaching regulation. It aims to increase data protection and privacy for all individuals within the  European Union  and the  European Economic Area,   but the impact of GDPR stretches far beyond Europe as any organisation worldwide which deals with EU consumers and organisations has to comply. Industry shake-up GDPR is a ‘game changer’ for the financial services industry. Many small firms have found it difficult to dedicate the time and resources to get it right and will continue to struggle to be fully compliant; especially as many are still struggling with the costs and demands of Mifid II and other complex regulatory reforms, says Nigel Green, the boss of deVere Group. “GDPR represents a watershed moment for the financial services sector. This is an opportunity for all firms to redouble their efforts to overhaul their business practices where necessary, ensuring the clients’ interests are always front and centre,” explains the founder and chief executive of the independent financial services organisation. He continues: “Holding data without good reason to do so will no longer be allowed. Not only is it protecting clients further by putting them back in control of their personal data, but it is going to make the industry work smarter, harder and better.” Green believes that one of the key ways that GDPR will affect the operations of financial services companies is in the storage and management of the data; therefore, experts in this highly specialised field will likely benefit from good opportunities. Compliance and data experts in demand   Meanwhile, in Australia, change is also coming to the financial sector in the wake of the Royal Banking Commission, which was set up last year by the  Australian  government to focus on misconduct in the  banking, superannuation and financial services industry. Many Australian banks have ‘significant issues’ with compliance the commission heard; suggesting this will be at the forefront of efforts to clean up the sector in the country going forward. There was a time in the financial sector when compliance was almost an after-thought, where officers were relegated to the backwaters of the industry. The financial crisis of 2008 changed all that. A recent study by Accenture showed that institutions expect to increase investment in compliance by 89% over the next two years and its strategic role continues to grow, with over two-thirds of chief compliance officers reporting directly to the CEO or the board of directors. Demand for candidates with skills across the full range of risk and compliance has never been higher, from legal experts and specialists in risk framework design and implementation, to risk data analytics and monitoring, as well as risk management experts. If you found this blog useful make sure you read our other insights: Digital assets: the next generation of financial services Remaining employable in the digital world of financial services The five  most promising careers in Financial Services Top jobs in fintech in 2018