​How friendly is ‘business-friendly?’

The stock market climbed to record heights following Trump’s conclusive election victory, largely driven by the promise of deep tax cuts, increased government spending, and financial deregulation in the name of a more business-friendly environment.

While a relief rally was expected, optimism is waning as the murmurings of uncertainty emerge across financial services. That said, the S&P 500 – Trump’s scoreboard– is still up by around 3% since November 6th.

Whatever transpires, we can predict (with near certainty) a seismic regulatory shift to reshape the sector over the next four years. For better or worse, Trump 2.0 will disrupt a slew of business-critical areas, including the labor market.

What does it mean for America’s risk and compliance professionals? The compliance recruitment specialists at Broadgate explore the potential impact below.

Key Updates

• Earlier this month, Trump promised to ‘dismantle federal bureaucracy,’ which includes the restructuring of federal agencies, a polarizing move that will likely result in some major priority changes for financial services regulators, guided in part by the appointment of Trump-aligned banking agents.

• Banking looks set to win big. Proposed policies point towards the easing of M&A approvals, decreased capital requirements, tax cuts, and the reduction of fee restrictions. After years of what many perceive to be anti-growth regulatory pressures, the changes are widely welcomed by bankers and businesses

• Bitcoin value soared to an all-time high (nearing $100,000) following Trump’s re-election, representing what looks like a new era for crypto. Investors are banking on Trump’s administration creating a crypto-friendly regulatory landscape.

• Doom and Gloom for green energy? Trump’s fixation with fossil fuel production and vocal opposition to climate regulation could spell warning signs for the global market, particularly as the EU makes strides toward a more sustainability-focused economy. ESG (environmental, social, governance) stocks tumbled, but UBS recently claimed that fears are ‘overdone.’

Streamlined Compliance?

For those looking to streamline their compliance functions, it’s important to recognize that deregulation does not automatically merit third-line cutbacks. Risk will stick around whether it’s regulated or not.

It’s also worth noting that while deregulation may be a running theme, we’re yet to find out what this will look like in practice. The landscape may change, but who’s to say the tenets of corporate compliance will do the same?

Moreover, teams working across international jurisdictions will still need to comply with local regulations – in light of Trump’s proposal to increase import tariffs and exercise trade sanctions, it’s reasonable to suggest that the complexity of cross-border compliance will intensify.

As the US financial services space adjusts to a new environment, we expect to see a rise in demand for interim recruitment solutions, primarily in project management and compliance. An agile workforce will be the key to keeping up with fluctuating regulatory demands.

This reflects a broader trend in workforce development – firms are increasingly prioritizing adaptability over rigid, long-term structures. Investing in alternative recruitment solutions will help firms reposition for long-term success.

In-Demand Skills

Somewhat paradoxically, deregulation tends to create a more elaborate risk environment, in many cases leading to increased demand for compliance professionals. Some of the most in-demand skill sets we’re seeing currently include:

Loan workout/Distressed Debt– The rise in loan workout roles in banking reflects a strong response to the complexity of modern credit management. This is characterised by higher default rates driven by inflation and global supply chain challenges, often requiring teams to manage and restructure non-performing loans (NPLs). Alongside this, regulatory bodies are pushing banks to address NPLs proactively while maintaining balance sheet health. Banks are shifting strategies to focus on preserving client relationships and minimizing losses through restructuring, particularly as leveraged lending and riskier credit portfolios expand. Rising interest rates and tighter policies have increased borrower distress, and the complexity of fintech, cross-border, and sector-specific lending has amplified the need for specialized workout teams to mitigate risk and ensure compliance.

Interest Rate Risk/ALM–The growing demand for Asset and Liability Management (ALM) and interest rate risk professionals stems largely from rising interest rates, increased market volatility, and the complexity of managing balance sheets, profitability, and liquidity. Regulatory bodies require rigorous compliance with frameworks like IRRBB, emphasizing stress testing and risk mitigation. Banks face profitability pressures due to narrow margins, liquidity risks highlighted by recent banking failures like SVB, and evolving market dynamics with diverse funding sources and product offerings. Advances in modelling tools like QRM and a talent gap in this niche area further underscore the need for skilled professionals to ensure resilience, compliance, and operational efficiency amidst these challenges.

Third-Party Risk Management–The heightened focus on third-party risk is a byproduct of increasing regulatory scrutiny, cybersecurity vulnerabilities, and reliance on external vendors. Financial regulators demand rigorous vendor assessments to ensure resilience, compliance, and data security, while high-profile breaches have spotlighted risks tied to outsourcing critical services. Supply chain disruptions from global uncertainties have further amplified the need for robust vendor continuity plans. The growing adoption of digital technologies adds to the complexity, requiring (in most cases) organizations to evaluate vendors' ethical and sustainability practices. Addressing these risks is crucial to avoiding operational disruptions, legal liabilities, and reputational damage.

Uncertainty

Global macroeconomic uncertainty is all but guaranteed. Building defensible compliance talent pipelines is not impossible, but it is essential for navigating the road ahead.

How are you preparing for the changes ahead? We’re eager to hear from leaders in the regulatory space, hiring managers, heads of compliance, CCOs, and CPOs – let us know if you’re interested in connecting with our Risk and Compliance recruiters; reach out to me directly:connor.nurse@broadgatesearch.com.