Recruiting Specialist Staff

The FCA has undergone a change in its recruitment practice, appointing of a number of specialists from within the investment industry.  In buying “inside knowledge” the FCA is able to improve monitoring with a more informed, less theoretical approach.

Regulated firms have begun to mirror the FCA’s practice in recruiting in-house specialist staff, focusing on key areas of regulatory risk.  The decision to fund expertise in the area of oversight, for example, is weighed against the risk and cost of non-compliance.  It seems that the penny has finally dropped – prevention is far cheaper than cure.

Continuing with fund oversight as an example, what types of specialist are being recruited?  In the fund administration world, experienced Fund Accountants and Fund Accounting Managers are often installed to oversee outsourced valuations and reporting, an area of high risk requiring not only subject matter expertise but also familiarity with relevant data analysis tools.  In a similar way, Transfer Agency specialists are recruited by fund managers to handle third party administration oversight, ensuring that investor dealing and client money processes are contained within a framework which minimises operational risk.

The introduction of fund industry specialists is viewed positively by regulators, particularly when it is part of a programme to uplift expertise, improve technology and professionalise the firm’s culture.  The regulators approve of a “top down” approach, where a quality, low risk culture feeds down through the organisation.  It has never been more important to ensure that proper, professional and relevant resource exists within your organisation.