Compliance (in Financial Services) – is fundamental to ensuring that organizations operate ethically, responsibly, and within the boundaries of applicable laws and regulations. Beyond regulatory adherence, compliance is essential for managing risk, fostering trust, and supporting the organization’s broader strategic goals. The nature of compliance roles varies depending on the organization’s needs, including considerations like academic background, leadership responsibilities, and the extent to which external legal counsel is utilized.

Responsibilities:

• Administer the firm’s code of ethics/personal trading policy and monitor employee trading compliance, including trade allocations.
• Develop and conduct forensic testing on various compliance areas to identify potential issues and enhance controls.
• Assist with the administration of the order management system compliance function, including creating and modifying compliance rules.
• Maintain the firm’s restricted list and assist with procedures related to Material Non-Public Information (MNPI).
• Analyze, track, and implement controls around regulatory changes to ensure compliance with evolving laws.
• Prepare and submit annual and quarterly regulatory filings required by the SEC and other relevant bodies (e.g., Form ADV, Form PF, Form 13F).
• Establish and optimize data gathering and reporting processes for both regulatory and internal compliance use.
• Monitor and enforce U.S. trade issues processes (1940’s Investment Advisors Act), ensuring timely resolution, client notification, and proper documentation.
• Oversee the U.S. client account opening and onboarding process, including AML/KYC reviews.
• Respond to compliance-related inquiries from team members and provide ongoing support to your team, reporting to the Chief Compliance Officer.

Key Functions

Regulatory Compliance: One of the primary responsibilities of compliance teams is to make sure the company is adhering to a wide array of regulations, such as anti-money laundering (AML) requirements, the Bank Secrecy Act (BSA), and global financial standards. Compliance professionals are tasked with monitoring regulatory changes, creating internal policies, and ensuring timely submission of mandatory filings.In some cases, roles may require specialized legal expertise, particularly for handling complex regulatory interpretations or cross-border compliance issues. These roles often benefit from candidates with a Juris Doctor (JD). However, operational compliance and legal assistance positions may not require a legal degree and instead focus on the day-to-day implementation of policies and procedures.

Building vs Enhancing Compliance Frameworks: The nature of compliance roles often depends on whether the organization is establishing new frameworks or optimizing existing ones.

• Building New Functions: Creating a compliance framework from scratch, such as for a new market entry, the introduction of new investment products, or transitioning compliance in-house, demands strategic leadership and project management skills.
• Enhancing Established Systems: Maintaining and improving existing compliance processes often focuses on increasing efficiency, ensuring regulatory updates are implemented, and integrating compliance into broader business operations.

Leadership roles in these areas may involve overseeing staff and managing transitions or expansions, requiring a balance of technical expertise and strong interpersonal skills.

Risk Management and Costs: An integral part of the compliance function from an allocation standpoint is managing regulatory and reputational risks while optimizing resources. For more senior / executive level roles, organizations often consider the trade-offs between in-house expertise and reliance on external counsel.For example:

• A Compliance Senior Principal with a salary of ~$150,000 may require the use of an additional $100,000+ annually for external legal support to complete objectives
• Alternatively, a candidate with deeper expertise earning $200,000 may be able to handle most legal matters in-house, potentially reducing overall spending on external counsel.

This decision however depends on the organization’s specific needs, priorities, and budget.

Partnership with Business Operations

• A modern compliance function integrates seamlessly with business operations, ensuring that regulatory considerations are embedded in day-to-day activities. By leveraging tools like governance, risk, and compliance (GRC) software, organizations can automate reporting, reduce manual errors, and enhance the overall effectiveness of compliance initiatives. Collaboration across departments, such as partnering with HR for employee training or working with product teams on regulatory approvals, is key to making compliance a proactive and value-driven function.

Helpful FS Compliance Designations & Career Resources:

1. Certified Compliance & Ethics Professional (CCEP)
2. Certified Regulatory Compliance Manager (CRCM)
3. Certified Anti-Money Laundering Specialist (CAMS)
4. Financial Industry Regulatory Authority (FINRA) Compliance Resources

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Compliance Officer, AML Specialist, Compliance Analyst, Risk & Compliance Manager, Regulatory Affairs Specialist, Chief Compliance Officer, Compliance Testing Manager, Audit & Monitoring Specialist