Financial Regulatory Forum

U.S. compliance salary report: More jobs, higher pay, but post-crisis boost is limited

By Emmanuel Olaoye and Stuart Gittleman, Compliance Complete

NEW YORK, May 29, 2014 (Thomson Reuters Accelus) - The job market for compliance professionals is picking up. But the high fines and complicated investigations financial services firms face as regulators and enforcers sharpen their scrutiny after the 2008 financial crisis have had a limited impact on compensation trends, boutique recruiters and global firms told Compliance Complete.

Average starting salaries in a broad range of financial compliance positions rose 2.3 percent to 4.2 percent in 2013, according to figures from Robert Half, an international recruitment firm. (See chart) That compares with about 3.4 percent among financial professionals as a group. (more…)

In bid to punish individual, FinCEN pursued MoneyGram business leaders, but caught compliance chief – source

By Brett Wolf, Compliance Complete

NEW YORK, May 20, 2014 (Thomson Reuters Accelus) - Although investigators with Treasury’s anti-money laundering unit tried to identify a senior business leader at MoneyGram International Inc who could be penalized over the money transfer giant’s admitted compliance failures, available evidence left them only one viable target – the firm’s former chief compliance officer, a former official with firsthand knowledge of the investigation said.

The push by Treasury’s Financial Crimes Enforcement Network (FinCEN) to send a stern message to the financial services community by targeting one of its own with a large fine began roughly a year and a half ago due to pressure from Capitol Hill. FinCEN investigators eyed a number of current and former MoneyGram employees, but found that senior business leaders had not left an evidence trail to follow. (more…)

“Super managers,” governance spotlighted in economist Piketty’s blockbuster capitalism critique

By Henry Engler, Compliance Complete

NEW YORK – May 8, 2014 (Thomson Reuters Accelus) - How much of a role have corporate boards played in rising income inequality in the United States, the UK and elsewhere?

If one reads between the lines of French economist Thomas Piketty’s best-selling blockbuster book on capitalism and inequality – “Capital in the Twenty-First Century” – the answer might be: quite a bit.

The core of Piketty’s thesis and empirical evidence focuses on the long-term relationship between returns on capital and economic growth. Specifically, over long periods of time, when the return on capital exceeds the rate of economic growth, inequality tends to ensue. On the other hand, when growth exceeds capital’s return, income equality tends to improve as wealth is driven more by wage growth. Since 1970, according to Piketty, we have been living in world dominated by the former, with rising returns to holders of capital the primary force behind widening income gaps in the United States and certain European economies. In economic terms “r” – the return on capital – has been greater than “g” – the rate of growth – for some time. (more…)

Better career paths, new reporting lines as compliance gains status at banks – global report

By Bora Yagiz, Compliance Complete

NEW YORK, Mar. 20 (Thomson Reuters Accelus) - The increasingly important role compliance risk management plays in the banking sector is demonstrated in areas ranging from reorganized risk departments to clearer reporting lines and more rewarding career paths, according to a report by the financial consultancy Accenture.

“The roles of the risk, and especially of the compliance, departments have increasingly been gaining stature within banks in the last five years or so,” said Steve Culp, senior managing director of finance and risk services at Accenture. “Banks are more frequently increasingly adopting organizational structures that connect and align the compliance officers more closely with their decision-making bodies, such as with senior management or the board.”  (more…)

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