Citigroup Lifting Pandemic Restrictions, Now Mandates 600 Traders to Return to Office Fulltime

By Moon Harper

May 27, 2024 04:49 AM EDT

Citigroup, on Friday, requested 600 eligible US employees to return to the office full-time, as regulatory demands make it challenging for Wall Street banks to permit remote work, particularly for trading roles.

The Financial Industry Regulatory Authority (FINRA) Rules

The regulator's temporary halt on disclosing and inspecting home offices and other locations where brokers and traders conduct substantial securities business, implemented during the pandemic, expires on May 31. However, in the upcoming weeks, the Financial Industry Regulatory Authority (FINRA), the primary watchdog for US brokerage firms and exchange markets, plans to reinstate these rules again to oversee workplaces.

Earlier this week, private securities industry regulators resisted banks, stating that their new rules offer member firms more flexibility to permit eligible registered persons to work from home after the temporary COVID-19 relief measures expire.

Major Banks' Stances on The Upcoming Changes

More major banks are summoning employees back to their offices full-time as the remote work days of the COVID-19 pandemic fade into memory.

Citi cited the conclusion of FINRA's COVID-related relief as the rationale behind its decision to recall workers and stated in an email that the majority of its employees would adopt a hybrid schedule, which would entail working at least three days per week in the office and up to two days remotely.

Barclays also mentioned that its return-to-office initiative aligns with FINRA's new regulatory policies. Michael Roberts, HSBC's chief executive officer for the US and the Americas, echos this sentiment, indicating the bank's intention to avoid imposing a full-time mandate. According to the report, UK banking giant Barclays announced in a memo reported by Bloomberg that thousands of its investment banking staff worldwide will be required to work from the office full-time, except when traveling to meet clients, starting on June 1.

Roberts told Bloomberg TV on Thursday that the company would adjust to FINRA rules and ensure that those required to be present five days a week would comply. However, he expressed a preference for a voluntary return to the office, emphasizing the importance of employees feeling productive and content about coming back. HSBC is in discussions with approximately half of its workforce in New York, comprising around 530 employees, regarding potential regulatory changes. HSBC's head of human resources, Mabel Rius, informed Bloomberg that the bank strives to accommodate as many staffers as possible to maintain their hybrid schedules. However, she emphasized that HSBC is not enforcing a mandatory five-day in-office workweek for all employees.

According to the report, the lender is endeavoring to provide as many people as possible with the option to work from home if they desire. All three firms have implemented some of the most flexible post-pandemic working policies compared to their counterparts on Wall Street.