Free cookie consent management tool by TermsFeed Blog - Financial Regulation – Why employee retention is key to good practice | William Rose

Financial Regulation – Why employee retention is key to good practice

Financial regulation underpins almost every aspect of the financial services sector. These laws and regulations determine how asset managers, finance brokers, bankers, and many more, must operate and conduct themselves. 

Without proper financial regulation, unscrupulous firms can bring the sector into serious disrepute. We’ve seen this recently, with major scandals involving Greensill Capital and London Capital & Finance showing just how important financial regulation is.

Although not widely acknowledged, solid, robust employee retention plays a key role in financial regulation. Here’s why and what you can do to implement it. 

Why retention is key

The current financial landscape is wracked with uncertainty. 

Covid-19 is still a very real issue, with the global economy yet to recover fully. While there is some cause for optimism (KPMG predicts global GDP will rise by 6.6% in 2021), there is a long way to go until the virus is fully under control.

As a result, the last thing financial institutions need now are the hefty costs that come with poor retention. Indeed, Forbes estimates that the cost of turning over a mid-level employee is 125% of their salary. For senior executives, that figure rockets to an eye watering 200%. 

Up next, there’s Brexit. Almost forgotten in the wake of the pandemic, Britain’s decision to leave the EU is finally beginning to hit home. Recently, The Financial Times reported that the UK’s swaps market is taking a hit, as more traders move their business out of London. 

Keeping your star performers is therefore essential. In the current climate, replacing them will not only be costly, but it may also not be possible. 

But there’s another reason to retain staff where financial regulation is concerned: performance. High turnover of staff often means low productivity. Financial regulation is one area that organisations, such as banks, hedge funds and asset management firms, cannot afford to slack off.

With that in mind, we’ve rounded up 4 key areas for you to consider regarding employee retention and financial regulation: 

1. Offer constant regulatory training

Financial regulations change often. Recent updates to the UK’s operational resilience policy, driven by Bank of England (BoE), Prudential Regulation Authority (PRA), and Financial Conduct Authority (FCA), is just one example of this.

As the laws that govern us change, it’s vital that financial institutions upskill and train their employees to meet these challenges. Therefore, a robust and thorough training program is essential. 

Not only will this ensure regulatory compliance, but it offers growth opportunities for employees – a key factor in retention. 

2. Embed financial regulation within the company culture

Studies show that a strong company culture is key to retaining staff. In fact, 48% of employees said that a poor culture would be enough to start them looking for a new job, according to Columbia University.

So how does this tie into financial regulation? The recent paper, Regulation, Corporate Culture and Individual Responsibility in Banking, argues that an institution’s culture is pivotal in reducing instances of misconduct.

Ethics and honesty must be sown into an organisation, it argues.

“Regulation of banks is a necessary though not sufficient condition for good behaviour. There needs to be a greater focus on the underlying culture of banks because if this is hazardous no amount of regulation will prevent misconduct,” says the report.

3. Invest in tech

Like most sectors, finance is undergoing a period of rapid digitalisation. 

As a result, financial regulation as we know it is set to change. Major regulators, such as the Financial Conduct Authority (FCA) and the Bank of England, are already embracing this shift.

To keep pace and retain staff, financial service organisations must invest in tech to compete. Take investment banking, for example. With growing competition from the fintech space and increasing transparency over prices, digitization is a major priority for 2021 and beyond.

4. High turnover creates knowledge gaps

We know that high staff turnover is costly and damaging for morale. What most employers don’t consider is the vast knowledge gaps it can create. In a heavily regulated industry such as finance, the outcome can be catastrophic.

KPMG’s Evolving Asset Management Regulation Report points out that asset management is seeing a regulatory shift towards cyber security, data protection, cloud outsourcing, distributed ledger technology (DLT) in payment, and clearing and settlement systems – to name but a few growing areas of concern.

It’s clear that for all sectors, cyber security professionals are already in short supply. And that’s just one example from the above list. Therefore, retaining experts who operate in these areas is vital for financial institutions, such as asset management. 

When you’re building highly skilled compliance teams, recruitment is a key concern. William Rose Associates is a specialist recruitment agency working with organisations in the financial services sector.  

Let us find you the right people to keep your business compliant.

If you’re interested in learning more about what we can do for you, please get in touch.

Subscribe newsletter
Back to resource Hub

Take a look at some of our Latest Roles

Explore a curated selection of opportunities, where your next career move is waiting.

Job Title:

Settlements Investment Administrator

Job Title: Settlements Investment Administrator Location: London Salary: £30,000 - £40,000 Role Overview: William Rose Associates are working alongside a highly regarded Financial Services Institution based in London which is looking for a Investment Administrator, to join the firm. Responsibilities: Ensuring all trades are matched and settled on ISD Monitoring of unmatched trades in CR

Permanent

Job Title:

Investment Operations Associate

Job Title: Investment Operations Associate  Location: London Salary: £40,000 - £50,000 Role Overview: William Rose Associates are working alongside a highly regarded Investment Management firm based in London, which is looking to recruit an Investment Operations Associate to join the business.  Responsibilities: Liaising with traders and third-party providers in the booking, matching and s

Permanent

Job Title:

Fund Operations Supervisor (FTC 12 months)

Job Title: Fund Operations Supervisor Location: London Role Overview: William Rose Associates are working alongside a highly regarded Asset Management firm based in London which is looking for a Fund Operations Supervisor, to join the firm on a 12 month Fixed Term Contract. Responsibilities: Oversight and Supervision of the NAV Oversight function for all in house funds involving a varied ra

Temporary

Job Title:

Senior Client Reporting Analyst (12 Month FTC)

Job Title: Senior Client Reporting Analyst Location: London Salary: £70,000  Role Overview: William Rose Associates are working alongside a highly regarded Asset Management based in London which is looking for a Senior Client Reporting Analyst, to join the firm on a 12 month Fixed Term Contract. Responsibilities: Produce monthly and quarterly Segregated client reports in accordance with IM

Temporary

Job Title:

Investment Operations Senior Administrator

Job Title: Senior Administrator Location: London Salary: £40,000 Role Overview: William Rose Associates are working alongside a highly regarded Wealth Management based in London which is looking for a Senior Administrator, to join the firm. Responsibilities: Monitoring daily workflows within the team to ensure both regulatory and internal deadlines are met Responsible for checking and aut

Permanent

Job Title:

Operations Analyst - (12 months FTC)

Location: London Role Overview: William Rose Associates are working alongside a highly regarded Privately-owned Investment Management and advisory business based in London which is looking for a Operations Analyst on a 12 month Fixed Term Contract, to join the firm. Responsibilities: Daily Valuations of our client portfolios Monthly Valuations of our client portfolios Reconciliat

Temporary

Job Title:

Operations Analyst

 Location: London Salary: £50,000 Role Overview: William Rose Associates is working alongside a highly regarded financial services institution based in London which is looking for an Operations Analyst, to join the firm. Responsibilities: Responsible for timely and accurate competition of reconciliations and resolving breaks Liaising with staff in London and abroad to ensure MT5 syst

Permanent

Job Title:

Relationship Manager

Job Title: Relationship Manager Location: London Role Overview: William Rose Associates are working alongside a highly regarded Investment Platform and Software providers based in London which is looking for a Relationship Manager, to join the firm. Responsibilities: Taking on high levels of responsibility and autonomy from the outset, you will own the relationships with our clients  Build

Permanent

Job Title:

Client Service Administrator

Job Title: Client Service Administrator Location: London Role Overview: William Rose Associates are working alongside a highly regarded Wealth Management Firm based in London which is looking for a Client Services Administrator, to join the firm. Responsibilities: Opening of client accounts Dealing with a variety of client queries Updating of static data on internal systems Collating due

Permanent

Job Title:

Onboarding Administrator (12 month FTC)

Job Title: Onboarding Administrator (12 months FTC) Location: London Role Overview: William Rose Associates are working alongside a highly regarded Wealth Management Firm based in London which is looking for an Onboarding Administrator, to join the firm on a 12 month Fixed Term Contract. Responsibilities Review and approve new client documentation including carrying out relevant AML/KYC/ Iden

Temporary

Job Title:

Transitions Officer

Job Title: Transitions Officer  Location: London Role Overview: William Rose Associates are partnering with a reputable bank based in London, which is recruiting for a Transitions Officer to join the business. Responsibilities Transition Management, ensuring timely receipt of all required documentation, liaise with Sales Team and Client Relationship Management and other relevant Company areas.

Permanent

Job Title:

Senior Investment Analyst

Job Title: Senior Investment Analyst Location: London Role Overview: William Rose Associates are partnering with a Wealth Management Firm based in London, which is recruiting a Senior Investment Analyst to join the business. The job holder will report to the CIO to assist with annual fund due diligence review meetings, preparation of regular Portfolio Monitoring Reports for all portfolios over

Permanent

Job Title:

Operational Risk Management Officer

Job Title: Operational Risk Management Officer  Location: London Role Overview: William Rose Associates are partnering with a reputable bank based in London, which is recruiting an Operational Risk Management Officer to join the business. The job holder will act as the 2nd Line of Defence responsible for providing risk oversight for operational risk management emanating from the EMEA Division’

Permanent

Job Title:

Data & Reporting Analyst

Job Title: Data and Reporting Analyst  Location: London Role Overview: William Rose Associates are working alongside an Asset Management firm based in London which is looking for a Data and Reporting Analyst to join the business.  General Requirement: •          Client and Fund reporting experience within asset management side or vendor solution providers (application software or middle offic

Permanent

Job Title:

Bond Operations Settlements Analyst (12 month FTC)

Job Title: Bond Operations Settlements Analyst (12-month FTC) Location: London  Role Overview: William Rose Associates is working with a well-known Asset Management firm based in London, which is looking for a Bond Operations Settlement Analyst to join them on a 12-month FTC basis.  Responsibilities: Ensure the timely and efficient settlement of trades Liaising with Brokers and Custodians

Temporary

Loading...