Hedge Accounting Setup Lead – Challenger Bank (Outside IR35)

A rapidly growing challenger bank is seeking an experienced Hedge Accounting contractor to lead the set up of their hedging function.

The role requires a qualified accountant with past experience in setting up a similar function within a bank. Due to the nature of the project, it is able to sit outside of IR35.

Key Responsibilities:

1. Impact Assessment:

   • Evaluate the potential benefits of applying macro fair value hedge accounting (FVHA) under IAS 39 for IRSs in GBP.
   • Determine if macro FVHA can effectively reduce P&L volatility arising from fair value movements of IRSs.

2. Hedge Effectiveness Testing:

   • Conduct hedge effectiveness testing to quantify the P&L impact of implementing macro FVHA.

3. Policy Development:

   • Develop a comprehensive hedge accounting policy in accordance with IAS 39, outlining key principles based on findings from hedge effectiveness testing.

4. Documentation Preparation:

   • Prepare hedge accounting documentation, aligning it with the established policy. Focus on the specific fair value hedge (FVH) relationship between economically hedged loans and proposed hedging instruments.

5. Collaboration with FP&A and Treasury:

   • Work closely with the Financial Planning & Analysis (FP&A) and Treasury teams to build a macro FVHA model (To Be Determined) that aligns with our strategic goals.

Qualifications:

• ACCA or ACA certification.
• Proven track record of successfully implementing hedge accounting in a banking environment.
• Knowledge of IAS 39 Financial Instruments: Recognition and Measurement.
• Experience with macro fair value hedge accounting (FVHA).
• Strong analytical and quantitative skills.
• Excellent communication and collaboration abilities.

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