Adapting to Regulatory Change in 2025: What It Means for Financial Services and Recruitment

Here’s a closer look at some of the key regulatory developments impacting the industry and what they mean for recruitment.

1. SEAR – Senior Executive Accountability Regime

Introduced as part of the Individual Accountability Framework (IAF), SEAR officially came into effect in July 2024. While the full scope of the regulation will apply to most firms by 2025, its focus on senior executive accountability is already reshaping governance structures in financial services.
What It Means for Clients:
Firms must ensure clear accountability and compliance at the executive level, with defined roles and responsibilities.
There’s a growing need for leaders who can navigate regulatory environments while maintaining transparency and integrity.
Recruitment Implications:
Demand for experienced compliance officers, governance specialists, and senior executives familiar with accountability frameworks will surge.
Organizations will also look for professionals skilled in embedding accountability cultures within teams.

2. MiCAR – Markets in Crypto-Asset Regulation

Effective from June 2024, with applicability to Crypto-Asset Service Providers (CASPs) starting December 2024, MiCAR introduces a comprehensive regulatory framework for crypto-assets.
What It Means for Clients:
CASPs must establish robust compliance mechanisms to meet transparency and operational standards.
Firms will need expertise to interpret and implement the new regulations effectively.
Recruitment Implications:
Expect increased demand for specialists in crypto-asset compliance, blockchain technology, and regulatory reporting.
Knowledge of MiCAR’s specific requirements will become a sought-after skill for legal and compliance professionals.

3. DORA – Digital Operational Resilience Act

From January 2025, the Digital Operational Resilience Act (DORA) mandates all financial services firms to implement robust measures addressing digital operational risk.
What It Means for Clients:
Firms must develop frameworks to manage IT security, incident reporting, and risk assessments consistently across their operations.
Ensuring resilience against cyber threats will become a top priority.
Recruitment Implications:
There’s a significant need for IT risk professionals, cybersecurity experts, and operational resilience managers.
Skills in managing digital infrastructures and aligning technology with regulatory requirements will be in high demand.

4. CSRD – Corporate Sustainability Reporting Directive

Scheduled for Spring 2025, the CSRD will require companies to enhance their sustainability reporting, focusing on transparent and consistent data related to environmental, social, and governance (ESG) practices.
What It Means for Clients:
Companies must invest in robust systems to capture and report sustainability data.
There’s increased pressure to align business strategies with ESG principles.
Recruitment Implications:
ESG reporting specialists and sustainability consultants will become integral to compliance teams.
Organizations will also seek finance professionals skilled in integrating sustainability metrics into financial decision-making.

5. SFDR – Sustainable Finance Disclosure Regulation

Similar to the CSRD, the SFDR emphasizes transparency in sustainable investment practices. A review in Spring 2025 will likely refine its scope, ensuring alignment with evolving ESG standards.
What It Means for Clients:
Firms must ensure accurate and consistent disclosures on sustainability risks and impacts.
This regulation reinforces the importance of embedding sustainability into core financial strategies.
Recruitment Implications:
Experts in sustainable finance, regulatory reporting, and ESG integration will be highly sought after.
The demand for professionals who can interpret regulatory requirements and implement practical solutions is expected to rise.

Adapting Through Talent

These regulatory shifts underscore the need for a workforce that is not only skilled but also adaptable. At Elevate Partners, we understand the complexities of these changes and work closely with our clients to source professionals who can navigate this evolving landscape.
Whether you need compliance experts to meet new regulatory demands, IT risk specialists to bolster digital resilience, or ESG professionals to strengthen sustainability initiatives, we are here to help you build the teams that will ensure your success in 2025 and beyond.

Let’s talk about how we can support your recruitment needs in this era of transformation.