Welcome…to the 30th edition of House. In the world of compliance hiring, the Hong Kong Jockey Club has made a huge hire by luring Paul Gallemore across from Walmart to be their new Head of Compliance. Another ‘Hong Kong institution’, HSBC, has also made a significant change with Darren Furnarello appointed the new Regional Head of Financial Crime Prevention, continuing the global trend of senior business heads taking on regulatory leadership roles. Furnarello, a twenty year HSBC veteran, previously headed the Financial Institutions Group for Hong Kong.
In London, Edward Maguire has left Deutsche Bank to join Standard Chartered as their EMEA Head of Financial Crime Prevention, also based in London.
Other themes we look at this month include:
The rise in RegTech and whether this will spell the end of many compliance officer roles to automation
The recent emergence of new job titles we don’t think existed 5 years ago!
Considered a sub-set of FinTech, RegTech focusses on leveraging new technology to effectively address the intensification of financial regulation in a cost efficient manner, as well as addressing a gap in the financial services market that is being disrupted at a speedy pace by FinTech.
Through the realised benefits of adopting RegTech solutions and the integral support by governments who have facilitated and collaborated with RegTech firms through partnerships and accelerator programs, the growth of RegTech in recent years has been dramatic. However, to what extent is RegTech influencing compliance functions?
At this point, the impact for most compliance officers has been limited, but we are starting to see more examples of the impact of RegTech on the industry. RegTech is a frequent topic of conversation we have with candidates and clients alike. One Global Head of Compliance at a top tier European Bank was quoted as saying “We are now entering compliance - Act 2, the time of the machine”.
It appears Act 2 is already upon us and we are starting to see changes to reflect this, particularly on the buy side, where they are more flexible towards and quicker to adopt new technology. One proposition that could cause redundancies, but streamline regulatory processes and significantly reduce costs on an industry wide scale, is the potential establishment of a centralised digital database to comply with KYC standards. Singapore is already piloting a national KYC utility for financial services, based on the MyInfo digital identify service, and Hong Kong’s government has labelled the database “crucial” to the city’s development as a FinTech and financial centre.
Whilst we believe there will always be a need for compliance officers, the adoption of FinTech and RegTech and the more algorithmic and digital nature of banking, compliance officers will have to adapt and evolve to an industry dominated by machines.
New Job Titles!
Finally, we thought it would be interesting to list some new job titles we have come across this month that we are fairly sure didn't exist 5 years ago!
Chief Digital Compliance Officer
APAC Head of Sanctions Governance
Compliance Innovation Officer
Data Analytics Compliance Officer
Chief Data Privacy Officer
If you are thinking of up-skilling or changing career, there are some common themes emerging on the future of compliance and we think these job titles are really indicative of that change.