Compliance trends are among the trickiest to predict nowadays, partly thanks to the byzantine complexity of the modern regulated business. If there’s one thing we’re sure of, however, it’s that roles are changing shape. Compliance jobs look set to be irrevocably altered by the rising tide of AI and RegTech, (which in itself will need a fresh skillset to navigate), and the widespread demand for ESG is poised to shake up business forever.
With any big change comes even bigger opportunities. If you’re hoping to stay ahead of the regulatory-shaped drag curve, check out the top trends that compliance talent is contending with.
1. The ESG Agenda
The FCA (The UK’s Financial Conduct Authority) has delayed the publication of its SDR (Sustainability Disclosure Requirements) policy until later this year, a welcome opportunity for some, as it provides extra time to ensure that key measures are put in place to account for the changes.
The SDR seeks to improve transparency and trust in the sustainable investment space, representing a continued shift to a more consumer-centric paradigm in the world of financial services.
We recently caught up with Dawn Hart, Compliance Director and MLRO at DF Capital who helped us explore the ESG agenda in more detail. Read the interview here.
What does this mean for talent? For one, the demand for skillsets that encompass ESG experience will rise exponentially.
2. Culture Concerns
Many compliance candidates are feeling the burden of toxic company cultures lately, as shifting regulations prove troublesome in terms of inter-departmental relationships. When compliance professionals are seen as barriers to innovation and dealmaking (primarily from sales departments) instead of the enablers of success that they are, there is usually a more sinister cultural issue at hand.
The growing D&I (diversity and inclusion) focus, combined with its role in ESG, is spotlighting the harmful nature of these cultures, and we suspect many changes will need to be made soon – Talent attraction and retention depend on it.
We saw businesses make large strides when it comes to implementing D&I policies in 2021, something that dropped off the following year (particularly in the US), largely due to budget cuts, impending recessions, and the fallacious belief that D&I should be the first function to get cut when the going gets tough.
3. AI and the Jobs of Tomorrow
AI has revealed its transformative power across industries all over the world. For compliance professionals, AI represents an opportunity to alleviate the mundane aspects of their roles, automating menial tasks and freeing up their time for more meaningful, interpersonal work.
That’s a best-case scenario, but the reality is vastly more complex. An AI-enabled transformation requires a monstrous amount of strategizing, collaboration, talent, and compliance.
The biggest hurdle to progress is likely not the AI, but the controllers themselves. For jobseekers in this space, developing a keen understanding of how their prospective employers intend to use this tech (and who’s in charge of using it) is essential.
4. Rising Crime Rates
Increased rates of financial crime are partly a by-product of rising inflation and the cost-of-living crisis, which naturally pushes up demand for compliance professionals. The more financial crime, the greater the need for new regulations, tools, techniques, and talent.
While this sounds like good news for compliance professionals seeking new opportunities (and it certainly is in many ways), there is a downside to this. The talent pool is struggling to meet the growing demand, resulting in heavy competition and, in plenty of instances, understaffed compliance functions.
Organisations that can successfully invest in their company cultures have the edge over the competition – we’ve seen it in action.
5. The Need for Agility
A space that evolves consistently demands agility. Businesses will likely keep looking to third-party support in the coming years, and incorporate easily scalable digital infrastructures to help them pilot their services to success.
Compliance jobs, despite the press, tend to be anything but mundane in today’s world. If you’re looking for an exciting new opportunity, or you want to catch up with our specialist recruiters on all things compliance, don’t hesitate to reach out to the Broadgate team today. We’re here to help.