Overview of role and responsibilities

The role holder is required to:

Provide expert thought leadership input on behavioural economics to shape the continuous development of the Conduct Risk Approach and ensure its design is ‘future proof’ drawing on ‘best in class’ evolutionary thinking on behavioural economics from both the regulatory and academic environments, and practice from across the industry. In addition to work with the competition team in Group Legal to help shape the approach to proactively managing the competition risks faced by HSBC. Specifically the job holder will:
- Be informed on the FCA approach, the Competition and Markets Authority approach and other academic and industry practice works on behavioural economics (i.e. FCA Occasional Paper No 1: Applying Behavioural Economics at the FCA) as appropriate to develop strategy for inclusion of behavioural economics in the UK Bank Conduct Risk Approach
- Deliver high quality day to day support and challenge from a behavioural economics perspective in respect of product design, pricing, marketing, sales and after sales processes to all UK global business lines within HSBC Bank plc.
- Identify and prioritise risks to consumers inherent in business models, including but not limited to, analysis of evidence of mismatches between products’ declared function/features and consumers actual use; root cause analysis of consumer biases generating unfavourable consumer outcomes; analysis of underlying consumer preferences, assessment of the impact of consumer biases on product design and development.
- Perform and / or commission analytical work to inform and support advice given.
- Communicate behavioural economics outputs to inform business strategy and first/ second line oversight and challenge.
- Assist in the development of appropriate metrics and thresholds/tolerances to determine Conduct Risk appetite.
- Assist in the refinement of the existing Management Information and lead the further development of data indicators reflecting behavioural economics inputs, working with all UK global business lines.
- Work with the competition team in Group Legal as needed to help shape HSBC’s defence or proactive advocacy around competition issues related to consumer behaviour.
The jobholder is operating in a highly fluid regulatory environment, where regulations and regulators are often in a state of change, and where regulations are becoming increasingly complex. In addition to regulation, due regard will be necessary for the effective analysis and interpretation of academic and Industry work on behavioural economics and application to the Bank.
A major challenge for the jobholder will be to ensure the differing demands and approaches of a number of separate internal and external stakeholders are met by the Bank.
The jobholder will need to be able to advise senior management in a persuasive, professional manner, and will need to balance the requirements of the letter and spirit of the regulations against the commercial realities and the drive of the business to achieve/exceed its goals for sustainable compliant growth.

Strategy:

To analyse and interpret academic, regulatory and Industry work and pronouncements on behavioural economics and their input to the regulatory and competition law landscape
To contribute as appropriate this analysis and interpretation to the continued development of the UK Bank’s approach to conduct and competition risk management
To implement Group Compliance Policy, with specific emphasis on behavioural economics

Customers / Stakeholders

To ensure that fair outcomes for customers and orderly transparent operation of markets continues to be at the heart of everything we do, both personally and as an organisation.
To assist line management in their responsibility for complying with regulation, including the provision of advice on conduct risk issues.

Training and development

To provide appropriate, relevant training/awareness of behavioural economics to the business.

Leadership & Teamwork

To successfully support assigned projects through to completion
To foster a collegiate relationship within UKB RC and with the business lines supported

Operational Effectiveness & Control

To continually reassess the compliance/conduct risks associated with the role and inherent in the business, taking account of changing economic or market conditions, legal and regulatory requirements, operating procedures and practices, management restructurings, and the impact of new technology.
In conjunction with Compliance colleagues, to implement the Group Compliance Policy by containing compliance/conduct risk in conjunction with the relevant First Line teams. The term ‘compliance’ embraces all relevant financial services laws, rules and codes with which the business has to comply.
To adhere to and be able to demonstrate adherence to internal controls.

Requirements

Qualifications in line with the department’s T&C Scheme
Recent experience in a regulated environment working as a behavioural economist
Recent experience in a Compliance team working with FCA and/or other financial services regulations
Competency as defined in the department’s T&C Scheme
Relevant knowledge and awareness of banking and payments
Excellent communication skills both verbal and written
Proven organisational abilities
Solution focused
Ability to work effectively as part of a small team
Excellent negotiation skills