Tougher regulation of financial services in the aftermath of the global financial crisis will create both challenges and opportunities, recruiters have heard.

Bill Haynes, chairman of the new Recruitment and Employment Confederation’s accounting and financial services group, which launched in London yesterday, told recruiters at the launch that the sector had undergone “a huge amount of change”. 

The regulatory landscape had changed, he said, from a relatively light touch environment to one of “more discipline, more rigour and more scrutiny”.

Haynes, who is also chief executive of recruiter Verridian, said that while this made life “more demanding” for recruiters, it also provided opportunities for those who met high quality standards.

Martin Tuckwell, a former City regulator, told the audience of finance recruiters that the prospect of more rigorous and more intrusive regulation by the Financial Services Authority had important implications for recruiters.

Among these were:

• a smaller pool of talent as staff aged over 50 decided that the new regime, including the requirement for higher qualifications, “wasn’t worth the hassle”

• a return of return of large-scale sales staff forces within financial services as remuneration moved away from commission to payment for advice

• many more compliance staff

• fewer independent financial advisers, with those remaining concentrating on high-value clients

Tuckwell said that the new regulatory environment was a great opportunity for recruiters. “The regulator needs to ensure that high standards in terms of qualifications, candidates and ethics are met. Your role in driving those standards, and finding the right person for the right job, has never been more in demand.”