Investment compliance consultant is a critical role in financial institutions to ensure regulatory compliance. This article summarizes the key job responsibilities, required qualifications and skills, as well as career development opportunities for investment compliance consultants. With tighter regulations and rising compliance risks, demand for experienced compliance professionals continues to grow rapidly.
Conduct compliance reviews to ensure adherence to laws and regulations
As an investment compliance consultant, one of the core responsibilities is to regularly review business operations and identify any non-compliant activities or processes. This includes reviewing marketing materials, investment recommendations, account opening process, trade monitoring, disclosures to clients, etc. You will need to have a solid grasp of latest regulations such as SEC rules, FINRA rules, 1940 Act, ERISA to perform effective reviews and make recommendations for enhancement.
Provide advice and training on compliance matters
Investment compliance consultants play a critical role to advise front office, operations teams and senior management on the right compliance procedures and controls to implement. For example, you may need to interpret new SEC regulations and design tailored processes. You also need to conduct ongoing compliance training sessions to ensure all relevant staff understand latest regulatory updates.
Perform risk assessments and testing
A key aspect of the compliance function is to proactively identify and measure key compliance risks. Investment compliance consultants need to conduct risk assessments across business lines to pinpoint areas of concerns, such as potential conflict of interests, mis-selling risks, data privacy, etc. You also need to develop appropriate testing procedures to ensure existing controls are functioning properly.
Monitor regulatory changes and provide updates
One of the challenging aspect of investment compliance function is to stay on top of fast evolving regulations. As an experienced compliance consultant, you need to constantly monitor new regulations or changes published by SEC, FINRA, federal and state agencies that may impact your financial institution clients. You also need to translate the implications into actionable steps for your clients.
In conclusion, investment compliance consultants play an indispensable role in financial institutions to manage regulatory compliance risk. The job requires a unique blend of legal, compliance, risk management and communication skills. For junior candidates interested in breaking into this field, getting the right compliance qualifications and credentials is critical.