Financial sector compliance

[NibblyPig]

I work for a small financial company (smallco) that has been acquired by another financial company (bigco).

Bigco has done compliance training and demands that all employees complete a bunch of declarations stating things like what shares they hold, that they have no ties to any businesses connected with any of their partners, that you have no criminal record etc.

All of their documents begin with "As an employee of BigCo..."

I contract through an agency for a consultancy business (OtherCo) that has placed me with their client (originally SmallCo, but now SmallCo has been acquired, I work for BigCo).

I think it makes me look like a disguised employee if I sign all this stuff. Really any agreements should be between BigCo and OtherCo, or perhaps BigCo and MyCo that MyCo will declare all of the stuff they want on behalf of whomever they send.

Am I making a big fuss out of nothing or should I decline / ask them to send their request to MyCo? They have already stated everyone including contractors must comply, presumably as a blanket CYA policy.

[WTFH]

Get them to send it to otherco/agent

[northernladuk]

Somethings I think you are fine with, compliance training and the like. Others not so. The fact it says employees on the top of the form doesn't necessarily mean it's a problem. Could just be badly worded I.e. it's on the top of the HSE form that everyone has to sign. It does however sound like you are following exactly the same process as the employees which could be very tricky.

That said you've stated that contractors must also fill it in so you have been explicit mentioned. I'd store that as evidence and carry on. Be careful about signing stuff personally rather than as the business though.

[handyandy]

This is very standard in financial companies (especially investment banks, brokers, etc. that are FSA registered and deal on stock exchanges, regulated OTC markets, etc.). It was enforced regularly by these firms on contractors at least 10 years ago and is becoming more frequently (and rigidly) enforced - in part due t all the scandals such as LIBOR and FX spot fixing.

At the end of the day the big companies expect anyone working for them (directly or indirectly) to personally sign a compliance statement. Whether you get them to go to MyCo or OtherCo with the request it will have to be you (or any substitute the MyCo sends on site) to sign the form/statement. Don't expect them to back down as the implications to them in terms of fines/censure/etc. will be too big for them to ignore and you will find the compliance departments now carry a lot more weight than they used to before the crisis so they can usually tell other departments to fall into line.

You do of course have the choice not to sign it but sooner or later that choice will result in you not working for either client.

In terms of IR35 status impact it may be worth contacting QDOS as I'm sure they have dealt with this many times.

[MrMarkyMark]

Share holdings withstanding the other things are usually covered up by the pre-screening carried out by the agent.
Often, financial companies will ask you to disclose shareholdings of over a certain value, after you have joined.

[NibblyPig]

No qualms about fulfilling their requirements, just the way it's worded. If I can get them to send it to MyCo or OtherCo etc. then great, if not I'll just sign & document everything.

That said...

There is a clause that says:

No employee shall be employed by or accept any renumeration from or perform any services for any person or entity, other than BigCo or a member of the BigCo Group, except as specifically authorised by his/her line manager and the compliance dept.

There's no way I can agree to that as Me & MyCo has other stuff going on in the background...

[LondonManc]

No qualms about fulfilling their requirements, just the way it's worded. If I can get them to send it to MyCo or OtherCo etc. then great, if not I'll just sign & document everything.

That said...

There is a clause that says:



There's no way I can agree to that as Me & MyCo has other stuff going on in the background...

Which stitches you up and badges you as an employee rather than a contractor. If you explain to them that you cannot sign it as the exclusivity clause goes against other commercial activities that YourLtd is carrying out, see what they say. In your own mind, does that exclusivity have a price? As in would you risk this current gig to maintain the other background stuff? Or would you accept a payment to secure that exclusivity? Sounds so much like a permie tie-in it's untrue.

[chopper]

There is a clause that says:

No employee shall be employed by or accept any renumeration from or perform any services for any person or entity, other than BigCo or a member of the BigCo Group, except as specifically authorised by his/her line manager and the compliance dept.

But you're not an employee, so therefore the restrictions within that statement do not apply to you.

[LisaContractorUmbrella]

But you're not an employee, so therefore the restrictions within that statement do not apply to you.

If the OP signs the contract then, I believe, in law they will be considered an employee for the purposes of this clause

[seanraaron]

I'd be surprised if this applies to you, but as others have suggested check with your agent/any other intermediary which should give you some coverage. A circular went around here (banking client) about something similar and I was told that it definitely doesn't apply to the contract staff, only full-time employees. Probably depends on what you're doing for them more than anything else.