Business

Banks don’t want to inspect your home office, so they force hundreds of employees to come in five days a week.

Working from home regulations at banks are evolving, and some of the industry’s biggest players prefer to bring their employees in five days a week rather than make the effort to comply, including regularly inspecting workers’ homes.

During the pandemic, the brokerage industry watchdog, the Financial Industry Regulatory Authority (FINRA), suspended rules on workplace inspections to make it easier for banks to allow employees to work from home . The agency is now set to return to its pre-pandemic requirements for workplace monitoring, meaning some home offices will need to be registered with regulators and inspected remotely at least every three years in as part of a new pilot program.

Now, some of the banks that had been the most flexible in their work-from-home policies, including Citigroup, Barclays and HSBC, decided that complying with the renewed rules wasn’t worth it, Bloomberg reported. Between them, the three banks are bringing thousands of their employees back to the office five days a week.

Citigroup said Thursday it was requiring 600 employees previously eligible to work from home to come to the office five days a week, although it said in a statement that most of its staff can still work remotely two days a week, according to the media. Barclays cited “new regulatory policies” in a Thursday memo to explain why it is returning thousands of its investment banking employees around the world to five days a week in person. And 530 HSBC employees in New York may soon also have to change their remote working habits, Mabel Rius, head of human resources for the United States and Americas, told Bloomberg.

Michael Roberts, HSBC’s CEO for the United States and Americas, told Bloomberg that while the bank will comply with FINRA regulations, he wants employees to want to come back to the office.

“What we didn’t want to do is force people to come back just by executive order,” Roberts told Bloomberg in an interview Thursday.

Part of getting workers to work in person includes listening to why employees like coming to the office. Roberts said the bank incorporated much of that contribution into its new U.S. headquarters at Hudson Yards in New York, to make it “conducive to people coming back.”

“We will accommodate the FINRA rules, we will make sure that whoever needs to be here five days a week is here five days a week, but I don’t want to decree that people come back,” Roberts said. “I want them to come back because they want to come back.”

Meanwhile, some other industry giants, including Bank of America and Goldman Sachs, have already given five-day in-person mandates.

And JPMorgan Chase CEO Jamie Dimon, perhaps the best-known CEO on Wall Street, has long been a critic of remote work. Last year, the bank instituted mandatory return-to-office policies for senior employees, and Dimon said earlier this year that about 60% of the bank’s employees were on-site full-time.

FINRA, for its part, has disputed that its renewed policies are behind banks’ stricter work-from-home policies. In a statement on Wednesday, the regulator said some of its rules were no stricter than they were before the pandemic and that in fact it had adjusted some rules, including allowing inspections of places of remote work. These changes “provide member firms with more – not less – flexibility to allow eligible registrants to work from home,” FINRA said.

“FINRA has seen recent statements from companies claiming that strict new FINRA rules would force them to bring their staff back to the office full time,” she wrote in the statement. “This is a mistake.”

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News Source : fortune.com
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