The job of compliance departments in brokerage and investment firms is to ensure that all employees comply with the regulations of the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority. On the opposite side of the spectrum, FINRA employs a host of analyst and examiner professionals who ensure compliance with applicable investment regulations. Read on to learn how you can land a compliance position.
Understand the Need for Compliance
In recent years, there have been major corporate and investment financial scandals that have caused bankruptcies, economic destabilization and the loss of personal homes. Widespread loss of consumer confidence and business reputations have resulted because of these problems. Compliance investigators are compliance personnel who ensure that assigned companies adhere to basic net capital rules, state securities laws and internal compliance guidelines.
Companies are expected to address customer complaints, register all applicable employees and maintain a productive relationship with regulatory bodies such as the SEC. Companies are expected to be able to demonstrate how they maintain compliance with trading and market making rules. Companies should voluntarily review sales activities and discretionary accounts to make certain that employees are obeying securities laws. They should require their employees to maintain knowledge of securities industry rules and industry best practices.
Educational Requirements
A bachelor’s used to be the standard for anyone who wanted to work in a compliance department. Today, a master’s degree in finance, economics, accounting or management is preferred by most major firms. These degrees help to set an individual apart from four-year degree holders and all the other countless candidates who have minimal experience. Some companies even prefer to hire candidates with a law degree to analyze policies and interpret regulations.
The main objective a master of science in finance programs is to provide individuals with the skills and knowledge needed to advance their careers. These programs provide students with ideas, tools and frameworks that will help them investigate compliance issues. Students take classes in corporate governance, financial forecasting, risk analysis, capital markets and qualitative analysis.
Desired Skill Set
There are certain skill sets that candidates must possess in order to impress interview panels and be successful in the field of compliance. For instance, they must be detail-oriented with the ability to review large amounts of data within short time frames. They must be able to translate the highest standards of ethical codes and professional conduct into their daily work routine.
Compliance personnel must be able to logically and objectively decipher complex information, such as detailed trade activity histories, in order to determine whether the individual or firm is in compliance regulations. Compliance personnel must understand other jobs, such as sales and trading, and their associated rules. Employment candidates must have interviewing, research, quantitative and critical thinking skills.
Compliance organizations expect that candidates will have a strong background in auditing, accounting or the major stock exchanges. In order to perform a compliance position correctly, candidates must have a demonstrable high level of integrity and experience serving as an example for other company employees. When ready, go to the FINRA website to start your job search.
