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Key themes and trends:

  • The compliance market remains buoyant, with a number of key moves at the large global banking groups, with several changes at both the global and regional head level
  • There continues to be a particular focus on financial crime, but volume hiring is giving way to more strategic hires to help consolidate these groups, and improve efficiency
  • There has been a significant amount of activity in the UK retail financial services space. The large banking groups are restructuring and making hires as a result of ring fencing legislation. Challenger banks are also hiring as many go through significant periods of growth
  • A more formalized three lines-of-defence model remains a key focus for commercial and retail banks. Where the larger banking groups have more advanced governance structures, many smaller and mid-sized firms are currently looking at the best way to organize themselves
  • In the UK, The Senior Managers Regime came into force in March with a view to improving accountability. As such firms have had to declare which individuals are deemed “senior managers”, and those who will be certified. The increased liability associated with taking on such roles is prompting individuals to exercise more caution when considering opportunities at institutions deemed to have deep rooted compliance & cultural issues
  • In the US, FINRA is targeting AML Programs and “Culture of Compliance” as a 2016 Enforcement Priority, particularly for high-risk broker/dealers

Key moves:

Global Banking Groups

  • William (Billy) Fenrich replaces Stuart Breslow as Chief Compliance Officer at Morgan Stanley. Billy joined the bank to work on a Volker program in 2014, and was previously a partner with Davis Polk & Wardwell. Breslow remains with the bank as a senior advisor through January 2017. Separately, Tony Eastwood joins Morgan Stanley as EMEA Head of Compliance. He joins from Barclays, where he was Head of Compliance for Corporate Banking.
  • Peter Hazelwood joins Deutsche Bank as Group Money-Laundering Officer, replacing Ulrich Göres who is stepping down. Peter joins from HSBC where he is currently Global Head of AML Compliance.
  • Pamela Root joins Deutsche Bank as Global Head of Compliance, replacing Nadine Faruque who has left the bank. Pamela joins from Citi where she was Global Head of Compliance for the Institutional Clients Group.
  • John Davidson takes on Pamela Root’s responsibilities as Global Head of Compliance for the Institutional Clients Group at Citi. This is in conjunction with his role as Group Chief Compliance Officer.
  • Colin Bell joins HSBC as Group Head of Global Standards Execution and Remediation. He joins from UBS where he was Global Head of Compliance and Operational Risk Control.
  • James Oates, Group Head of Internal Audit at UBS will replace Colin Bell. Alan Wehrenberg, currently UK Head of Compliance & Operational Risk Control (C&ORC) and Global Head of Investment Banking C&ORC at the bank is appointed Group Head of Audit as of 1st June.
  • Richard Kennedy is appointed Interim Group Head of Internal Audit at UBS.
  • Kevin McKay, General Counsel for Americas Wealth Management at Barclays, is appointed Americas Chief Compliance Officer, replacing Jill Ostergaard who has left the bank.
  • Robert Nowicki has joined Deutsche Bank as APAC Head of Compliance. He was formerly APAC Head of Compliance for RBS.
  • Paula Dominic joins Credit Suisse as Americas Chief Compliance Officer from Bank of America, replacing Louise Guarneri who has moved internally. Paula was formerly with Bank of America as Group Chief Compliance Officer, and more recently part of a broader Internal Simplification Project, accountable to the CEO.

Retail Financial Services

  • Allan Clare joins HSBC as Head of Financial Crime Compliance UK (ring-fenced bank). He joins from Nationwide where he was Financial Crime Director.
  • Jennifer Shasky Calvery, Director of the Financial Crimes Enforcement Network (FinCEN), is joining HSBC in a senior global financial crime compliance role.
  • Matthew Elderfield joins Nordea in November 2016, as Head of Group Compliance and a member of the Group Executive Management. He joins from Lloyds Banking Group where he is Group Director, Conduct and Compliance.
  • Phale Mcmillan-To Van joins HSBC as Global Head of AML for Retail Banking and Wealth Management. She joins from Standard Chartered Bank where she was the Senior Programme Manager for Financial Crime Compliance in Europe.
  • Paul Williams moves to the Commercial Bank at HSBC as Head of UK Regulatory Compliance. He joins from Retail Banking and Wealth Management UK, where he was Head of Product Compliance.
  • Eleanor Dewar joins Sainsbury’s Bank as Head of Policy and Advice, Compliance and Conduct. She joins from Tesco Bank where she was a Senior Audit Manager.
  • Alison Verlander joins TSB as Head of Regulatory and Conduct. She joins from RBS where she was Head of Business Model Analysis and Conduct Delivery.
  • Julia Cattanach joins Experian as European General Counsel in September this year. Julia will be reporting into Darryl Gibson, Group General Counsel, joining from Tesco Bank where she was Compliance, Conduct and Regulatory Director.
  • Letitia Smith is appointed Conduct, Compliance and Operational Risk Director at Lloyds Banking Group. She was previously Compliance Director.
  • Jacqueline D. Molnar is promoted from Deputy to Chief Compliance Officer for Western Union, and is responsible for leading global AML / CFT, sanctions and consumer protection compliance programs.
  • Ingrid Busson joins PayPal as Head of Financial Regulation from Morgan Stanley, where she part of the bank regulatory legal group.
  • Soeren Seitz joins Manulife as Asia, Chief Compliance Officer. He joins from Goldman Sachs where he was Head of APAC Financial Crime Compliance group.

Asset & Wealth Management

  • Amrit Midha leaves State Street Asset Management where he was International Head of Compliance. He has set up his own consulting business. Gael Kerrigan replaces Amrit in the interim, who joins from Amundi Asset Management where she was Head of UK Compliance.
  • Sofia Rosala joins Copeland Capital as General Counsel and Chief Compliance Officer. She joins from Aberdeen Asset Management where she was U.S. Counsel and Deputy Head of Compliance.
  • Sean Gray replaces Don Andrews as Chief Compliance Officer & Chief Risk Officer at Bessemer Trust. Sean joins from M&T Bank where he was Chief Risk officer for the Wilmington Trust business.
  • Doug Siegel joins Oppenheimer Companies as Chief Compliance Officer from UBS Americas, where he was the Head of Wealth Management Compliance.

Regulators

  • Andrew Bailey is appointed CEO of the Financial Conduct Authority and starts this role in July. He was previously the Head of the PRA and replaces Tracey McDermott who has been interim-CEO. Sam Woods is appointed CEO of the PRA to replace Andrew Bailey. He has been serving as Head of Supervision for Insurance.

Exchanges and Brokerages

  • Anthony J. Albanese, the top financial regulator in New York State, joins The New York Stock Exchange as Chief Regulatory Officer. Mr. Albanese’s resignation comes several months after his high-profile predecessor, Benjamin M. Lawsky, announced he was leaving the Cuomo administration to start his own law and consulting firm.
  • Thomas D. Shpetner joins ITG, a leading independent broker and financial technology provider, as Global Chief Compliance Officer.
  • Susan Boudrot replaces Jim Reilly as Chief Compliance Officer for TD Ameritrade. Jim left the firm earlier this year. Susan was previously Chief Compliance Officer for the Broker Dealer.
  • Chad Estep is appointed Chief Compliance Officer for the Brokerage business at E*Trade. He replaces Tom McManus who has been appointed GC for the Brokerage. Chad was previously the Chief Compliance Officer for E*Trade Securities and joined from Stifel Nicholas in 2015 where he was Chief Compliance Officer.

Key interim themes and trends:

  • SMCR and SIMR are high on the agenda for firms across the industry. Firms have been seeking experienced interims to help navigate the legislation and drive implementation towards a more risk-aware culture
  • AML/KYC has seen much focus over the last 12 months. In many cases, remediation projects continue. In others, firms are increasingly looking forward and using expert interim resource to ensure best practice process and controls are in place. This often involves the delivery of training programmes and workshops across the business
  • MiFID II continues to draw much attention and resource. Firms are using interim regulatory specialists to conduct impact assessment analyses, establish cross-regulatory reform agendas, establish strategies for TOMs and other projects, as well as drive implementation of the changes required