CITIGROUP and HSBC Holdings are ordering more US staffers to report to company offices five days a week as regulatory changes make it trickier for Wall Street to allow working from home.
Citigroup is requiring about 600 employees previously eligible to work remotely to commute to company offices full-time, the New York-based firm said on Thursday (May 23). Even then, the majority of staff can continue their hybrid schedules, working up to two days a week outside the office, it said.
At HSBC, shifting regulations affect about 530 staff in New York – roughly half of its workforce in the city – and the bank is speaking to them about their options, Mabel Rius, head of human resources for the US and Americas, said.
The firm is trying to let as many people as possible retain the option of logging in from home if they would like to, Rius said. HSBC’s regional chief has said it can avoid a blanket five-day mandate for all staff.
The two banks are known to be among Wall Street’s most flexible in allowing employees to continue working remotely after the pandemic. The changes come as the Financial Industry Regulatory Authority (Finra) – the US brokerage industry’s main watchdog – is set to adjust rules for monitoring workplaces in the coming weeks.
That may spell the end of remote work for many bank traders and some other dealmakers, as bosses conclude that allowing the practice under Finra’s shifting rules is not worth the trouble or cost. Firms such as Barclays and Deutsche Bank have been sizing up the burden as they weigh changes to their own policies.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
With some bosses blaming Finra’s rules for a new slew of five-day office mandates, regulators have shot back, saying that, if anything, they are trying to allow greater flexibility – not less.
The tension stems from US requirements that banks monitor staff and facilitate periodic workplace inspections. When Covid-19 broke out, regulators initially eased some of their rules to ensure people could work at home. Some of those accommodations are now poised to sunset.
While Finra says the changes do not require firms to summon staff to offices five days a week, it has acknowledged that compliance requires work.
Some home offices will have to be listed with regulators as so-called “residential supervisory locations”. A pilot programme for those sites lays out a system for remotely inspecting them at least every three years, starting in July. Privately, some executives have said that keeping up with the requirements may amount to a hefty price tag to preserve an employee’s ability to log on from the comfort of home.
Firms may ultimately reach different conclusions. Barclays is among banks that also have been weighing a five-day office mandate for some staff, sources with knowledge of the matter said earlier this week. At Deutsche Bank, executives expect the firm can remain compliant with limited impact on its protocols, according to a source with knowledge of its thinking. Last month, Truist Financial told investment banking staff that they must work from the office every weekday from Jun 1.
Some of Wall Street’s largest banks – such as Bank of America, JPMorgan Chase and Goldman Sachs – already have embraced five-day office commutes across many of their desks, at least in practice if not as rules. But some smaller franchises have touted flexibility, which can give them an edge in recruiting and retaining talent. BLOOMBERG
