A conversation with Barney Lewis: Compliance, client pressures and why the MLRO can’t do it alone

Barney is a Senior Consultant in our Guernsey office, with over 20 years of experience in the industry across Fund Management, Fund Administration and Fiduciary Banking in operational, compliance and business development roles.

We caught up with him to talk about the kinds of clients he’s supporting, the challenges they’re facing, and where he sees pressure building in the market.

Can you start by telling us a bit about your role and the work you do?

I predominantly support our fund clients, It’s a wide mix, spanning traditional real estate and infrastructure funds through to more alternative open-ended vehicles.

Given my background in this space, it’s really where my expertise sits. I work with a number of clients and also hold prescribed roles with some of them.

I look at everything across the lifecycle of a client - from onboarding, day-to-day and periodic management, to compliance monitoring programmes and reporting. In some cases, I’ll also get involved in remediation projects or standalone investor review work.

What kind of challenges are clients presenting you with?

Compliance is a very technical, specialist area. Given the costs, most business owners aren’t looking to build that capability themselves. So clients tend to come to us either because they’re starting something new and don’t have the infrastructure or desire to run their own programme, or because they see the value and cost benefit in co-sourcing or outsourcing.

Over the year, I’ve seen far more instances of the MLRO role being outsourced - not always fully - but with us taking on the nominated officer function and managing the compliance monitoring programme. That gives firms access not just to one person’s knowledge, but a whole bank of expertise. And in those instances where we take on the prescribed roles, the client benefits from a panel of experienced individuals here.

And there’s still plenty of instances where clients just hit a difficult spot and need an extra pair of hands. We’re very effective at running external remediation projects and getting things back on track. Those types of projects are always rewarding to see unfold.

Are there any broader themes or trends you’re seeing?

We’re seeing firms recognise how isolated the MLRO role can be, and how unsustainable that is. There’s also the ongoing weight of increasing regulation. It’s not getting simpler. For many firms, bringing in external expertise is the only way they can keep up.

We’ve also got the infrastructure and systems, like Gateway that provides some of the much needed scaffolding to make everything more robust and evidence driven.

Looking ahead, what should firms be paying closer attention to?

MoneyVal is driving a lot of activity right now. That’s going to lead to more thematic reviews, more regulatory focus, and more demand for experienced people to do client book reviews as M&A activity increases.

We’re also expecting more pressure on boards. There’ll be a renewed focus on board members understanding the compliance function properly. It’s not enough to ask a question and go back to your team for the answer a week later. Boards need to understand the nuts and bolts.

Any advice for firms trying to get ahead of those shifts?

Give compliance the attention it needs. It can’t be an afterthought.

Boards carry the ultimate responsibility, and they need to be equipped to fulfil that properly. We often work directly with boards to provide training and build that understanding. That’s going to be a bigger part of the picture going forward.

And finally - outside of work, where would we find you?

Either at the side of a cricket pitch watching my kids, or coaching hockey. I’ve coached the island under-14 team, and I’m now helping set up an under-18 side to compete in the UK.

I do still play a bit myself - just about held together with duct tape! - but I enjoy playing alongside my two oldest boys. That’s been a really rewarding thing.