With the UK recruitment and contractor sector reacting to the introduction of Joint and Several Liability (JSL) legislation, Magna Group in collaboration with FCSA’s Diligence Hub, have launched a new Banking Risk & Compliance Dashboard, to help banks, capital lenders and financial institutions mitigate growing compliance and financial risk across their recruitment portfolio supply chains.
Diligence Hub, established by the FCSA (Freelancer & Contractor Services Association), the UK’s leading not for profit independent regulatory body for the recruitment supply chain, is an all-in-one compliance solution for umbrella companies, recruiters and payroll professionals.
The new legislation places increased responsibility on organisations throughout the recruitment ecosystem, making them potentially liable for non-compliance within their labour supply chain. As a result, agencies, lenders, banks, and end-users are under increasing pressure to ensure payroll compliance and up-to-date HMRC tax liabilities.
In the UK, around 700,000 people currently work through umbrella companies, supported by some 30,000 recruitment agencies and 400 umbrella providers. With the introduction of JSL legislation, a large part of the UK’s recruitment and temporary labour market is set to be affected, creating a real need for simple, practical compliance solutions. The new banking dashboard meets this challenge head-on, offering a central platform that helps financial organisations the ability to track recruitment agencies PSL’s and maintain clear oversight of financial risk throughout their portfolio.
However, the initiative represents more than a technology launch. Magna Group is positioning itself at the forefront of an industry-wide shift from reactive compliance to proactive risk management, helping organisations prepare for one of the most significant regulatory changes to have faced the contractor market in recent years.
Magna Group has also introduced a series of educational initiatives and advisory resources, providing practical guidance on JSL risk management and helping businesses understand how the new legislation may affect recruitment supply chains.
“The introduction of Joint and Several Liability represents one of the most significant regulatory developments the recruitment and contractor sector has seen in years,” said Richard Clements, Founder of Magna Group. “Businesses can no longer afford to view compliance as a box-ticking exercise. They need real visibility across their supply chains and the ability to address risks before they escalate.
“Our collaboration with Diligence Hub and the launch of the Banking Risk & Compliance Dashboard is about equipping the industry with the tools and insight needed to operate responsibly and confidently as the regulatory environment evolves.”
Chris Bryce, CEO of FCSA, added: “The introduction of JSL presents both challenges and opportunities for the sector. By collaborating with organisations like Magna Group, we can help ensure agencies, contractors, lenders and umbrella companies have the tools and insight they need to stay compliant and manage risk effectively.
“This dashboard goes beyond basic compliance,” he said. “It’s designed to give the industry the clarity, control and confidence needed to manage risk in a changing regulatory environment.”
Magna Group and Diligence Hub illustrate an emerging trend in the payroll and contractor management industry: increased collaboration among compliance experts, technology providers, and workforce teams to enhance supply chain transparency.
With the new JSL legislation, organisations across the recruitment and contractor landscape are expected to review their compliance frameworks and risk management processes, increasing demand for solutions that combine technology, guidance and operational expertise.
The initiative reflects Magna Group’s broader mission to agencies, lenders, banks, and end-users to navigate complex compliance requirements while maintaining efficient and secure workforce operations.
