[Part 1/3] When Compliance Becomes King: A Journey Through the GFC

Everything Old Is New Again

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In mid-2007, I was running a large interbank financial derivatives desk in Singapore. My role was straightforward: research markets, advise institutional clients, execute transactions between the world's largest banks. More than 70% of my time was spent on activities that directly generated revenue. Compliance meetings occupied perhaps an hour or two each week. They were necessary, certainly, but they weren't what defined my role or my team's success.

That balance felt sustainable. It felt normal. Looking back, I realise how quickly "normal" can disappear.

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When Everything Changed

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October 2007 marked the beginning of the subprime mortgage crisis. What followed was the Global Financial Crisis. Lehman Brothers collapsed. Bear Stearns, Royal Bank of Scotland, Washington Mutual followed. More than 140 financial institutions failed globally. Trillions of dollars evaporated. The global economy contracted sharply.

The public asked their governments a simple question: how did you allow this to happen?

Regulators responded swiftly. Every transaction required digital tracking. Every conversation needed recording. The compliance frameworks that should have prevented these failures were deemed inadequate, and the overhaul was comprehensive and unforgiving.

By 2012, my team was 60% smaller. The trading desks at every major bank had contracted. But compliance teams? They had grown exponentially. What had once been small departments tucked away in the back office became one of the most critical and pivotal functions in these organisations.

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The Transformation I Didn't See Coming

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The shift in how I spent my time was dramatic. Compliance meetings with banks and regulators dominated my calendar. The regulatory visits that had been annual courtesy calls became quarterly examinations, then unannounced audits. Every decision required documentation. Every relationship needed formal due diligence. Every transaction demanded digital traceability.

Individual accountability frameworks emerged. Senior managers weren't just representing their institutions anymore. We were personally liable for compliance within our domains. "I didn't know" or "that was handled by another team" no longer were acceptable explanations.

The institutions that couldn't adapt quickly enough paid billions in fines. Some lost their operating licences, or fell victim to forced mergers and acquisitions. The cost of non-compliance dwarfed what most organisations had previously invested in compliance systems.

What surprised me most wasn't that compliance became important. It was how completely and how quickly it became the foundation of everything we did. Revenue generation didn't stop mattering, but it became secondary to demonstrating that we were operating within regulatory boundaries.

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What I Learned

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The transformation taught me several lessons that have stayed with me.

First, industries don't transform gradually when regulatory pressure intensifies. The change is rapid and comprehensive. The organisations that anticipated this and prepared early maintained operational flexibility. Those that waited found themselves implementing systems under crisis conditions, at much higher cost, with far less control over the outcome.

Second, early movers gained competitive advantages that was unexpected. The firms that established robust compliance frameworks first attracted better talent. They built trust with regulators. They won opportunities for growth that others couldn't access. Being compliant became a differentiator, not just a requirement.

Third, the investment in proper systems was always less than the cost of inadequate ones. There used to debate whether compliance technology was worth the expense. After seeing the fines and restrictions, that debate felt naive.

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Why I'm Writing This Now

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The Higher Education industry is approaching what looks like a similar inflection point.

HE faces growing scrutiny over governance, financial management and international student recruitment. Immigration integrity concerns are prompting policy changes. Reports of subagent misconduct are drawing attention. Government inquiries are increasing. Regulatory standards are rising.

The pattern looks familiar. The warning signs are there. The questions governments are beginning to ask sounds like ones I've heard before.

Having navigated one industry's compliance transformation, I recognise the early stages when I see them. The institutions that prepare thoughtfully today will navigate what's coming successfully. Those that wait will find their options considerably more limited.

For higher education, the warning signs are unmistakable. The question is whether institutions will act before regulatory pressure forces their hand.

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Trent Tighe is Chief Commercial Officer at HEComply's parent company, Feezy Pty Ltd. He worked in financial services for 20 years across Singapore, Sydney, and Hong Kong.