Banks hiring to bolster robustness of regulatory reporting functions

James Polley 24.03.2020

There has been a specific focus on regulatory reporting functions within banks across London following a number of scandals surrounding misreporting. This has led to many banks hiring skilled specialists to bolster their functions.

Concerns over the quality of information being submitted to PRA

It’s no secret to those working in banking that regulatory reporting is currently a huge priority. Following on from a number of misreporting scandals, regulatory reporting functions in banks across London are now becoming subject to further investigations by the PRA. This is, in part, over concerns around the supervision and the quality of information being provided to the PRA. The net result is concerns over banks not having the capital to protect against possible losses - something that is a huge concern in present trading conditions. 

It has recently been reported that the PRA have engaged PwC to carry out a ‘skilled person report’ into Goldman Sachs over concerns relating to the reporting of both capital and liquidity. This comes after Citibank were issued with a £44m fine for errors in their reports between 2014 and 2018. Similar reports have also been carried out across other banks including; Morgan Stanley, Bank of America and Scotiabank.

Bank of England outline updated expectations around regulatory reporting

With obvious concern from the Bank of England about the robustness of regulatory reporting functions across London, David Bailey (Executive Director of International Banks Supervision) and Sarah Breedon (Executive Director for UK Deposit Takers Supervision) issued communications to the various banks about bringing in tighter controls around the quality of the regulatory returns. 

This communication makes comment on the expectations of the Bank of England and states how the integrity of regulatory reporting is the foundation of effective supervision. Further on, this letter points out that banks are expected to report promptly when asked about the design, governance and controls around delivering appropriate regulatory reporting, as well as explanations around regulatory reporting errors that have been identified, followed by a plan on how to remediate moving forward. 

As a result of the findings and reports from the PRA and BoE, the Accounting & Finance Banking team at Morgan McKinley have seen an increased demand for regulatory professionals across both our permanent and interim/contract desks. We have found that our clients are seeking additional headcount to bolster the functions in an attempt to alleviate reporting deadline pressures and extra workload to avoid fines and remedial work. As you might imagine, a significant portion of hiring so far has taken place around the Associate to AVP level within capital and liquidity. Candidates that have been hired at this level have covered BAU production roles, whilst existing senior members of the team have covered more of the review and project related work.

View regulatory reporting vacancies

The need for candidates to be more immediately available to help with the backlog and demands of the reports has been evident and has resulted in an increase in interim assignments. Because this demand still exists on an ongoing basis, a large majority of these roles have then converted to permanent.

Experienced specialists required across capital and liquidity

Another trend we have noticed is that, in light of the more immediate needs, the longer term requirement is for more strategic focused roles across capital and liquidity. Skilled and experienced specialists, who are able to identify issues within the reporting framework and implement better controls and procedures to help around the governance of the functions, are required for these roles. Unsurprisingly, we have found that these have typically been permanent hires. That being said, because banks have longer onboarding processes for permanent positions, we have seen a steady increase in these roles being on an interim basis. 

If you are interested in discussing the issues raised here in more detail, do get in touch with the team. For further information on the regulatory roles our team are covering or to discuss your next career move, get in touch on jpolley@morganmckinley.com or 02070920004.

James Polley's picture
Senior Consultant | Accounting and Finance Recruitment
jpolley@morganmckinley.com

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