Banks are resurrecting their compliance and risk recruitment programs on the back of signs the economy is recovering, as well as an increasing volume of regulation set to impact on the financial services sector.

Robert Walters’ manager of risk management and compliance, Jacob Smith, said banks are busily recruiting to rebuild headcounts after fi nancial crisis-induced redundancy rounds through 2008 and 2009.

However, he said 50 per cent of current com pliance roles are newly created positions, signi fying that banks are sourcing “new headcount to address new issues,” not just rebuilding pared back skeleton teams.

Smith highlighted the current batch of Aus tralian Securities and Investments Commission (ASIC) consultation papers covering a spectrum of banking arenas, which are causing them to prepare for a wave of “serious regulatory reform”, as well as Basel II, which is continuing to drive demand for risk management professionals.

During the depths of the financial crisis, Robert Walters’ risk and compliance business was receiving briefs from clients about one role a month. Recovery in the fourth quarter of 2009 saw the business contacted with one role a week, while in February this year there were three calls a week from clients eager to hire.

Smith said recent calls included not only op portunities for individuals, but for teams of as many as six people, with the compliance market active across investment banks, funds, and re tail banking.

Ninety-five per cent of new roles are experi enced hires, with a “sweet spot” for managers with five to eight years’ experience, who also have hands-on experience in the discipline, rather than just management skills.

Risk-focused roles are focused around capi tal adequacy requirements and data management, with banks keen to ensure that data accurately re flects liabilities, and that data flows ensure these are reported effectively at board level.

Smith said he also received a brief on a se curitisation-focused role in mid-February, which he said was the last place he would expect banks to be hiring for in the current market, considering the lack of securitisation business in the market.

Smith estimated that among domestic banks, most have repopulated their risk and compliance teams to the level they were at three years ago, with the likes of CBA and Westpac up on their headcount since then.