In a response to upcoming regulatory changes, Citigroup has announced that its 600 eligible employees in the United States will be required to return to the office on a full-time basis. The move comes as Wall Street banks are grappling with regulatory requirements that make offsite work, particularly in roles such as trading, more challenging.

During the pandemic, regulators had temporarily eased stringent requirements, allowing traders the flexibility of remote work. However, the Financial Industry Regulatory Authority (FINRA), the primary watchdog for US brokerage firms and exchange markets, will soon reinstate pre-pandemic rules to monitor workplaces.

Citigroup, the third-largest US lender, stated that the majority of its employees will adopt a hybrid schedule, working in the office for at least three days per week and remotely for up to two days. This decision intends to strike a balance between maintaining a physical office presence and accommodating remote work preferences.

The private securities industry regulator recently introduced new rules, countering the push from banks and emphasizing that the rules offer greater flexibility for eligible registered persons to work from home. These new rules come after the expiration of temporary COVID-19 relief measures.

Citigroup's move to reinstate full-time office work aligns with other financial institutions such as HSBC Holdings and Barclays. Bloomberg News reported that London-based Barclays has mandated that its global investment banking staff must work in the office or travel to meet clients five days a week starting from June 1st.

In a similar vein, HSBC is engaging in discussions with approximately 530 employees in New York regarding shifting regulations. The bank's head of human resources for the US and Americas expressed the desire to allow as many employees as possible to work from home, highlighting HSBC's efforts to offer flexibility while navigating evolving regulatory requirements.

These decisions by Citigroup, HSBC, and Barclays mark a departure from the more flexible post-pandemic working policies they initially embraced. As regulatory changes take effect, financial institutions are recalibrating their approaches to strike a balance between regulatory compliance and employee preferences.