Compliance rethink urged as banks face up to Mifid II
The demands of post-crisis regulation mean that banks need to take a more flexible approach to the compliance function.
Eoin O’Shea, CEO of Temple Grange Partners
One person who sees this as an opportunity rather than a problem is Eoin O’Shea, former global chief central compliance officer at Credit Suisse. O’Shea left Credit Suisse in November 2016 after 26 years with the bank to set up his own regulatory and compliance consultancy firm.
He believes that the way in which banks approach compliance has to change, stating that most risk, regulatory and compliance consultancy is still delivered through an “outdated and rigid” resourcing model designed several decades ago.
“All banks are grappling with a huge increase in workload and significant reduction in resources,” he tells Euromoney. “The work is relentless and money for compliance is increasingly difficult to access.
“The banking model hasn’t yet reasserted itself in the decade since the 2007 crisis: and this is complicated by the fact that compliance officers are still paid in the stock of the banks they invigilate.”
O’Shea’s answer to increasing disillusionment and high turnover among compliance staff is to approach the task in a more flexible way.