A survey conducted at the Alternative Investment Management Association’s CyberTech Virtual Forum in April revealed the majority of financial services professionals believe that their mental health has improved as firms have adopted a range of flexible working practices. 72% of respondents said flexible working has had a positive impact on the mental health of their teams (17% believe it has had a negative impact and 11% are unsure).
The UK is among the top nations embracing hybrid working for the long-term, with desk-based workers, including those in the alternative investment sector, expressing the desire to retain these freedoms.
A study conducted by AIMA in 2021 called Gaining an Edge: How hedge funds are navigating the new talent landscape, revealed that fund managers are taking this trend seriously. When asked how they are seeking to retain talent, 69% of fund managers surveyed said they are focused on improving the work/life balance of their employees, with 49% offering mental health guidance and support.
Many global studies point to the same link between flexible working and improved mental health. A study conducted by FlexJobs in association with Mental Health America (MHA) surveyed 3,000 professionals in 2018, to find that more than 97% of people believe that having a more flexible job has a “positive” impact on their quality of life.
The AIMA report goes on to point out that facilitating flexible working in the financial services sector requires a greater reliance on technology that enables compliant communications and data sharing in a virtual world. This is creating a surge in demand for digital compliance solutions and platforms.
“Because of the benefits to mental health, flexible working should and can be facilitated in financial services, but without exposing individuals and businesses to the risk of non-compliance,” said Matt Smith, CEO of compliance technology and data analytics firm, SteelEye.
“Communications record keeping and monitoring rules are a key component of financial regulation and exist to ensure fair trading and stable markets. Firms with weak information barriers and internal controls governing the use of eComms and other digital platforms need to carry out a comprehensive risk assessment and ensure they have oversight over all business-related communications.” Smith added.
Commenting on how firms can support flexible working while ensuring compliance, CEO of compliance chat solution, DeepView, Catherine Parry, notes that modern technology is key:
“Before enabling flexible working, firms must enhance their policies and processes with the capabilities they require to monitor the spread of information and identify potential instances of compliance breaches, with a particular focus on WhatsApp given the recent news of SEC and CTFC penalties for tier-one banks.”
In the UK, the FCA has been clear that its expectations around capturing, monitoring, and archiving communications data apply equally to employees who are working from home or other remote locations. In the US, the SEC has emphasised the need for firms to prioritise monitoring for MNPI leakages and insider trading. Consequently, firms should improve their internal controls or information barriers for digital communications if they want to continue to support flexible working.