Recruiter Huntswood profits slow as regulators ease up

Bank compliance recruiter Huntswood blamed a shift in regulation for slower profit growth last year.

The Reading-based company, which provides compliance staff at FTSE 100 banks and insurance companies, saw profits and turnover dip for the first time in seven years, underscoring a change in tack by regulators.

“The 2016 financial year has seen a different level of scrutiny and supervision by the regulators and, as such, we feel there has been a hiatus in the regulators’ approach,” the firm said in its accounts.

Revenue for the year ending last September dipped slightly to £304 million from £306.6 million a year earlier; pre-tax profits also fell 16% to £44.2 million.

Huntswood, which employs 5000 people, was co-founded in 1996 near Windsor Castle by entrepreneur David Brownlow, who shared in a £38.6 million dividend last year.

Turnover has grown tenfold since 2009 because of an onslaught of compliance demands for banks in the wake of the financial crisis but regulators have recently focused more on Brexit.

Brownlow and the firm declined to comment