Younger workeꦓrs are growing up in the age of the Consumer Financial Protection Bureau (CFPB), the Financial Industry Regulatory Authority (FINRA), and an embattled but 💝still potent Environmental Protection Agency (EPA).

The introduction of new and updated rules, regulations, and laws in the financial services, healthcare, telecommunication, and other sectors has created an increase in the need for qualified and ethical individuals. 𒊎Experienced regulators and risk/compliance professionals have seen increasing pay and new job opportunities.

In terms of importance and financial impact, chieꦬf compliance officers rank among chief financial officers (CFOs) and chief executive officers (CEOs) on some executive staffs, since a proper compliance environment keeps Uncle Sam at bay and reprꦚesents a noticeable advantage over less-prepared competitors.

This is increasingly true in finance. According to the Bureau of Labor Statistics (BLS), in 2023 the top-paying industries for compliance jobs included information services, aerospace manufacturing, and computer manufacturing.

Job Description

Compliance officer or manag🙈er positions are available in a myriad of industr🙈ies, but their duties and responsibilities are similar across sectors.

The primary duty of a compliance officer is to ensure a company is being run legally and ethically and is complying with all applicable industry regulations. This job duty begins with an in-depth knowledge of current regulations and ethical standards in a particular industry.

Compliance officers must understand how to interpret these regulations and how they fit into the businℱess operations of their companies.

A Base Understanding of Ethics and Standards

In addition to understanding legal regulations, compliance officers must also have a sound knowledge of ethical practices and standards in their industries. Although there are norms in most sectors, in practi🌞ce ethics are often left up to the interpretation of a compliance officer or manager.

The need for ethics interpretation makes it crucial for compliance officers to understand the underlying values of a company so that they can establish and implement standard procedures. An ongoing review of a company's ethical standards is a necessary part of any compliance officer's job.

Compliance and Ethical Procedures

Compliance officers share information regarding compliant behavior and ethical procedures with management, employees, and C-suite executives. In industries where regulatory burdens are high, compliance office✃rs spend a substantial portion of their time developing, improving, and distributing compliance programs to company employees.

An Example of Compliance Officers at Work

For example, compliance officers in the financial services industry focus their attention on anti-money laundering initiatives, including ongoing training and education programs that detail how employees can remain compliant with overarching regulati🎃on.

Similarly, a compliance officer who is working at a health care facility may devote a substantial amount of time to creating and disseminating training programs that focus on disclosure and privacy laws for protecting the facility's patients.

Compliance and Risk Management

Compliance officers are responsible for reviewing current and potential risks a business enterprise faces. The information regarding business- or industry-specific risks is passed along ꦇto high-level execu🌟tives to establish internal controls to minimize exposure.

A compliance officer must🦂 continually review the risks that face the organization along with the procedures that are in place to reduce that risk so that the company is well-positioned to manage it effectively.

Skills and Qualifications

Generally speaking, compliance workers need analytical, investigative, and decision-making skills. For obvious reasons, it's best if the officer has some experience working in the industry.

No two compliance officers face the same challenges, an✱d the nature of the job is such that every officer becomes a perpetual student: Regulatory changes tak﷽e place consistently.

Degrees in engineering, law, and chemistry–along with economics, finance, and management–are great assets on a complia🔯nce resume.

Those in the financial sector might also need to carry 澳洲幸运5官方开奖结果体彩网:securities licenses; professional certifications in a relevant field ar🐟e also valuable.

Salary Ranges

According to BLS 2023 statistics, the latest available as of this writing, annual salaries for compliance professions range from $43,790 to $123,710, and hourly wages from $21.05 to $59.48.

A lower-income earner may have less work experience or h🔯old a degree not directly related to the industry. A worker with a higher income often has substantial tenure in his position or has earned advanced degrees in business, accounting, law, or finance.

Those who work at large corporations are more likely to have access to 澳洲幸运5官方开奖结果体彩网:fringe benefits that increase the total compensation package, with chief c🍸ompliance officers possessing those on a par with other C-Suite executives.

Career Paths

There are compliance jobs in almost every field, which can make it a difficult career pat✱h to prepare for. For example, a compliance officer working at HSBC or Wells Fargo has very different responsibilities and educational requ🃏irements than a compliance officer working for Dow Chemical or Exxon Mobil.

Aspiring compliance professionals should identify industries of particular interest and understand their practical and 澳洲幸运5官方开奖结果体彩网:regulatory obstacles.

Certain industries, such as food, chemicals, health care, and finance lend ♈themselves to compliance departꩲment growth. However, a majority of new jobs for compliance staff come from the public sector, not private businesses.

Public Sector Compliance Careers

According to the BLS, the top three employers of compliance officers are the federal government, state governments, and local governments. In fact, local governments employ more compliance officers (33,430 as of 2023) than private companies (21,980) albeit at lower pay.

State and local public sector compliance jobs generally come with lower starting salaries than their 澳洲幸运5官方开奖结果体彩网:private sector cou🐭nterparts, but the benefits and job security are better. Even states with relatively modest public beneཧfits offer packages as good or better than the best private employers.

It's also difficult to get fired from a public sector job, essentially adding a form of unemployment insurance. So, while applying for a public sector job can be cumbersome, it is still a good option for those interested in compliance.

What is Financial Compliance?

The duties of compliance personnel vary by firm and job description, but the following are tasks that are typically accomplished by compliancღe dep༒artments:

• Ensuring that the company adheres to minimum net capital rules.
• Making sure that employees are following internal compliance guidelines.
• Fielding and addressing customer complaints.
• Maintaining a dialogue with regulatory bodies.
• Reviewing sales activities and discretionary accounts and making certain that other principals within the firm are obeying securities laws.
• Making sure that the firm complies with state securities laws.
• Ensuring that all employees are property-registered and have taken continuing education classes as required.
• Making sure that the company complies with trading and market-making rules.
• Representing the firm or preparing documentation for any pending arbitration cases.

Financial Industry Compliance Careers

The financial industrꦬy is a ripe field for those 💝interested in a compliance-related career.

The compliance department of a bank, brokerage, or investment management firm works to ensure that all of the employees and officers comply not only with 澳洲幸运5官方开奖结果体彩网:Securities and Exchange Commission (SEC) regulations but also Financial Industry Regulatory Authority (FINRA𝐆) rules.

Training Requirements

A position as a compliance officer or manager is not typically entry-level employment. Bachelor's degrees are usually required, and some employers look for advanced degrees, like a law degree or a 澳洲幸运5官方开奖结果体彩网:master's degree inꦆ business administr꧙ation (MBA), especially for higher-level positions.

Compliance officers in other sectors have the opportunity to complete the Certified Compliance and Ethics Professional Program (CCEP) through the Society of Corporate Compliance and Ethics (SCCE💝).

The CCEP requires participation in an intensive prerequisite course and passing an exam. Similar designation and certifi🦋cation courses are available throuဣgh the Ethics and Compliance Officer Association (ECOA).

Educational Requirements

In the 1980s, a bachelor's degree was not always required to get work in a compliance department. The idea was that employees would learn on the job.

That has changed. A degree in finance, management, accounting, economics, or law is a must to get a compliance job at any of the 澳洲幸运5官方开奖结果体彩网:bulge bracket firms. A master's degree in finance, accounting, or economics can help set an indi🦩vidual apart from the competi🍸tion.

Other Credentials

Applicants with a law degree often have a leg up on the competition as𝐆 they already have a feel for the way the law works. This is particularly desirable by many brokerage housesജ.

Other credentials can help a candidate stand out. COMPLY, formerly known as National Regulatory Services, offers an Investment Adviser C🌳ertified Compliance Professional credential for those seeking advancement in careers as comp💜liance officers within the financial services industry.

This advanced certification program provides participants with up-to-date regulatory content that is relevant to financial experts working in compliance departments.

What About Securities Licenses?

A firm may require its compliance personnel to become licensed. It is common for firms to require their compliance personnel to sit for the Series 7 and Series 63 exams. The curriculum for these licensing exams allows compliance officers to obtain a good foundation and understanding of the securities industry.

Other licenses that a firm may sponsor a compliance individual for include the Series 14, Series 26, Series 27, and Series 39 exams. These exams require an understanding of net capital rules, 澳洲幸运5官方开奖结果体ꩵ彩网:Municipal Securities Rulemaking Board (MSRB) rules, rules for maintaining customer accounts, sales (and other) supervisory roles, and record-keeping.

Work Experience

Compliance teams will occasionally hire people who have worked in other fields or aspects of the industry, such as brokerage sales and trading. Many of those who work their way up the compliance ranks have extensive back-office experience ꦅin trade settlement or operations.

A fair number of those in the field also have a background in accounting or have worked for the major 澳洲幸运5官方开奖结果体彩网:stock exchanges or FINRA as field auditors or examiners.

Beyond that, many companies will also look to see whether the candidate has had prior experience at a firm of similar size and stature. This experience ensures tha🌜t the individual will be able to handle the type of dut♔ies and often frantic pace characteristic of the compliance department.

Skill Set

Eve🀅n if an individual meets all of the above requirements and looks good on paper, there are specific skill sets that they must also have to be successful in the field of compliance. For example:

• Individuals should be detail-oriented and have the ability to review and analyze large data sets in short order.
• Since compliance personnel members are charged with making sure that the company adheres to all FINRA rules, they must be able to decipher information (such as detailed trade activity) and be able to determine whether the individual and/or firm is in compliance.
• Compliance personnel must have intimate knowledge of other jobs and functions, such as sales and trading (and the rules associated with them).

The Bottom Line

Compliance has an increasingly important role in our complex modern world. Laws and regulations are ꦺthere to protect workers, customers, and the community. The compliance department is responsible for making sure they are followed.