Germany’s Federal Financial Supervisory Authority, BaFin, has said that pension funds and other financial firms should act quickly if problems arise due to a shortage of skilled workers.

Following a study last year, the regulator made a statement on its website on staffing levels across the financial services industry.

Despite those results showing no concerns with the appointment of board members, supervisory boards, or key functions in the future, BaFin said that half of companies planning or having planned to fill vacancies between 2024 and 2026 expected to find difficulties in recruiting staff.

BaFin wrote: “The areas of capital investments, risk management, claims processing and portfolio management are particularly affected. In the IT sector in particular, there is a risk that IORPs will not be able to meet the supervisory requirements due to insufficient staffing.

"According to the companies, the main reason for the problems with filling vacancies is the lack of professionally qualified personnel ."

Some companies, BaFin said, have moved towards outsourcing functions. Ninety-seven said they had wholly or partly moved in this direction. If they were to go down this path, BaFin said, then the issue of risk would have to be closely examined.

There were other effects from a lack of, or the fear of a lack of, personnel.

According to BaFin, a total of 22 companies in its study said they were considering a partial portfolio transfer by the end of the decade due to the lack of skilled workers. A further fifteen, it reported, were considering liquidating the company.

BaFin said it would continue to monitor the situation.

It wrote: “Overall, the BaFin study shows that IORPs are affected by the risk of a shortage of skilled workers to varying degrees. Those companies that employ exclusively their own staff are particularly exposed.

"But the problem of the shortage of skilled workers is also becoming increasingly relevant for companies that are already outsourcing individual functions.”

It added: “BaFin will therefore continue to pursue the topic: it will hold talks with particularly affected companies and discuss possible measures, especially with regard to risk management.

"Further studies on the shortage of skilled workers are also conceivable, for example in affected service providers or in other sectors of the financial sector. BaFin wants to raise awareness among companies themselves and their service providers of the risk of insufficient staffing.”

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