Welcome
…to the 55th Edition of House! The emergence and spread of the Coronavirus, otherwise known as COVID-19, may well prove to drastically change the dynamic of hiring across the globe, BUT compliance roles nonetheless remain in high demand, particularly across the APAC region and in Australia…
It is important to note that while the virus has most certainly delayed the hiring process, as everyone’s attention appears to be entered around health and safety, compliance functions are of as much, if not MORE relevant than they have ever been. This certainly serves as a prudent reminder to organisations across the region, in regards to the importance of their business continuity, along with evolving regulatory expectations and fluctuating financial targets.
COVID-19 Regulatory Measures, Hong Kong & Greater China
The viral outbreak, which followed months of city-wide protests, has been met with a wide-ranging response from policy makers, and regulators, all of whom are seeking to protect the economy and support financial markets to the best of their ability.
As you can imagine, regulators and government entities in China are taking NO CHANCES, and have instructed state-owned enterprises across the region to keep financial taps open to help small business pull through, given experts at Peking and Tsinghua University believe that approximately 85% of China’s SME’s could collapse in a matter of 3 months, if they didn’t receive additional aid.
As of early February, proactive measures had been taken by an array of banks across Hong Kong, including BoC, ICBC, Hang Seng and Citi, whom were all quick to respond with relief measures, in response to the HKMA’s statistic that shows homeowners to have held HK$1.44 Trillion, or US$185 Billion in mortgages, as of the end of 2019.
The imminent prospect of an economic downturn as a result of the virus, certainly threatens hiring to a degree, yet we find that temporary roles, specific to regulatory filings, surveillance and reporting, may arise to accommodate deadlines amidst the global health crisis.
As recruiters, this certainly demonstrates a rise in demand for candidates with relevant risk management expertise, along with compliance professionals who can work to build a stronger internal support system.
Furthermore, given the roots of the pandemic, we can safely assume there to be a rise in F&B Compliance, particularly within Corporate’s in Greater China, to introduce thorough reviews and health and safely measures, to best ensure this health and safety debacle doesn't repeat itself.
Organisations around APAC, particularly in HK and the Mainland, are more than likely going to find themselves in need of compliance professionals, with experience in setting up emergency management systems, so as to create more organised responses to the any emergency that may arise, now or in the foreseeable future.
In doing so, compliance officers now carry the burden of both ensuring financial accountability, all the while ensuring they avoid panic amongst their teams and fellow employees. Institutions will find themselves in dire need of compliance procedures that fit into both a company’s governance and local, or civic context. Needless to say, the world of compliance is in need of leaders, perhaps now more than ever.
The Land Down Under
Australian regulators called for an emergency meeting on Monday 2nd March to address their handling of the coronavirus as the nation looks to best adapt to the looming threat of recession. This appears to make clear the intentions of Australian Compliance experts, whom appear adamant to stay ahead of curve, as far as ‘corona legislation’ is concerned.
IF, the Reserve Bank of Australia were to ease their monetary policies, as they're expected to do, they will be the first central bank in the developed world to respond to the Coronavirus threat. Needless to say, the world of compliance had their eyes and ears fixed on this meeting, as any action by the RBA will likely see the U.S. Federal Reserve and SEC, along with Japans Central Bank and FSA follow suit.
Australian markets, are arguably amongst those threatened the most by the coronavirus outbreak, given that the nation’s leading partner in trade just so happens to be China. The spillover effect implied by the outbreak of COVID-19, and the subsequent travel ban, hit Australia’s tourism, and education sectors hard..
Furthermore,, considering the recent state of regulatory affairs in Australia, the entire region will likely see a thorough restructure of their compliance procedures, as institutions, predominantly on the sell side, attempt to revitalise their reputations within global finance. In attempting to do so, organisations will be looking far and wide for returning Australian Compliance Officers…
While Australian Regulators and Compliance officers are operating under somewhat special arrangements, institutions are repeatedly reminded that the outbreak of COVID-19 most certainly does not imply the relaxation of regulatory requirements. As a result, we are still seeing moves take place across the Australian market, particularly within Equities, AML and CTF Compliance, and do not expect the demand for candidates to decrease any time in the near future.
RegTech…The Future?
We expect to see the demand for candidates with a solid tech background to continually rise, as firms look to employ tech-centric regulatory solutions that offer ample protection, without compromising industry growth. These candidates will be expected to be well versed in the risk based compliance measures that come with RegTech applications, given the sheer availability of data they will have at their disposal.
We also expect the emergence and spread of RegTech to warrant restructuring within compliance procedures, as new regulatory solutions will certain bring about the need to reassess management plans. Nonetheless, compliance officials will in time strike a balance between RegTech and conventional models of regulation, as technology continues to move forward…