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The financial services industry showed resilience in 2020, despite disruptions due to the US election and the global pandemic, with a spike in compliance roles on the horizon toward the end of the year and into 2021 following a slump mid-year. As industry change accumulated, compliance functions were prioritized to remain despite regulatory responsibilities remaining unchanged.
Over the same period, FINRA issued non-compliance fines of $57.0 million and ordered restitution of $25.2 million. Between then and now, compliance professionals have become increasingly in demand due to the increasing risks. The market for Financial Services Law/Compliance is evolving as indicated here.
Risks are a dime a dozen
The pandemic has altered consumer behavior; more people have adopted innovative methods for accessing and managing their finances. Payment apps and online banking are steadily advancing, making automation within financial services a key driver for growth. Despite the significant increase in efficiency gained from remote working practices during the pandemic, it has also led to several new risks and possible abuses of the financial services market.
Many compliance professionals have started implementing technology-based risk management procedures in response to calls for more robust monitoring and surveillance systems. This has accelerated the need for professionals with a knowledge of legal and WORM compliance FINRA and data-protection experience.
Demand has peaked
The financial services industry’s legal and compliance recruiting sector is generally well known, but some areas are busier than others. Market volatility has been beneficial to certain sectors, such as hedge funds, investment platforms, and deal brokers. Macro hedge funds and quantitative hedge funds have flourished in their compliance and legal departments.
As hedge funds gain access to alternative data, they are increasingly seeking candidates with MNPI experience. Several mergers/acquisitions have been carried out by private equity and asset management firms in 2021. Increasingly, fintech firms hire senior-level compliance officers to ensure compliance obligations are being met. The role of compliance professionals is underscored here as fintech is often perceived as a safer career option than traditional banks.
Regulators have been surprisingly open-minded about innovative finance, which leaves compliance professionals with diverse career options. Also, the crypto asset management market has experienced a significant increase in hiring, as more and more firms are appearing in the market to provide regulatory screening, guidance, and approval for developing crypto ecosystems.
Agility is here to stay
As we enter 2022, candidates are increasingly calling for flexible roles; especially women, who often experience additional pressure to balance work and family. Hybrid working has yet to make a significant impact, and many firms are hesitant to be the first to adopt the strategy and are still determining what will happen to their policies. A period of volatility in the labor market thanks to the growing use of remote working and virtual interviews.
Often, candidates go through two or three stages of screening in a week thanks to technology, which facilitates finding a new job. The job influx following the pandemic has further exacerbated instability, especially in Q1 2021. Companies are now quickening their procurement processes and competing for candidates, fearing losing top candidates for lack of action.
The outlook is positive concerning the job market in financial reporting, regulatory reporting, risk management, and control processes. Companies have realized that compliance is important to maintain the trust of clients, investors, customers, and other stakeholders, especially in uncertain economic times. This rust can only be maintained through the efforts of expert compliance officers.
