Compliance officer

Compliance officers help senior managers to make sure that the activities of their organisation, and each person in it, meet the required standards of the regulatory authority. They help to set policies, investigate areas of concern and prepare reports for senior managers and directors.

Work activities

Most firms and organisations are regulated in one way or another and have to comply with the requirements of the government or government-appointed regulators. Typical examples are in connection with health and safety, or data protection. Responsibility for complying with whichever regulations apply to each particular firm belongs to the senior management of the firms concerned. In the case of sole traders, that will be the sole traders themselves. In the case of small firms, one of the directors or partners will often take on the responsibility, perhaps with several other duties. In larger firms, there is usually a compliance department, headed by a compliance officer who advises the board on the regulations which apply to the firm, and how the firm needs to comply with them. Reporting to the compliance officer there are often compliance managers, technical advisers and monitoring staff, checking that departments are being compliant.

Companies offering financial services such as mortgages, life assurance, investment management, financial planning and pensions are regulated by the Financial Conduct Authority (FCA) or the Prudential Regulation Authority (PRA). These organisations cover the way regulated firms conduct their business, the ways in which products are advertised and sold and complaints are handled, the way firms are organised, whether they are solvent and if they have appropriate systems and controls. The FCA also deals with qualifications that certain staff must have.

It is very important that senior management listen to the concerns of the compliance officer because the regulator can impose disciplinary penalties, including large fines, if firms do not meet the standards. Compliance officers are involved in preparing policies, staff handbooks and training schedules. They work closely with human resources departments to make sure that the correct staff training is carried out and recorded properly. They might sometimes give training themselves. They need to convince colleagues that compliance should be part of the culture of the entire company. They monitor all the activities of their organisation, investigate any areas of concern and prepare and present reports. They take an active role in making sure that all sales, advertising and promotional strategy and materials are clear, fair and not misleading. Compliance officers build good relationships with the regulating authority. They prepare for and manage compliance visits and follow up any action required as a result of the visit. They keep up to date with new regulations. They might be asked to investigate new business areas to make sure that they will comply with the law. Compliance professionals who work as consultants travel around to visit many different client companies.

Personal qualities and skills

As a compliance practitioner, you’ll need:

Excellent communication and interpersonal skills.
To be able to pay close attention to detail.
Report-writing skills.
To be self-motivated.
Presentation skills.
To be able to prioritise tasks and manage your time well.
General IT skills.
Confidence and determination.

Pay and opportunities

Salaries for compliance practitioners vary, depending on their role and responsibilities. According to job site Payscale, compliance officers earn an average of £29,000 (based on 374 salaries, Jan 2024).

Compliance officers usually work a standard full-time week, Monday to Friday, with extra hours according to the demands of the job. Some work much longer hours. Part-time and job-share opportunities are sometimes available.

Employers include banks, building societies, insurance companies, firms of investment specialists and investment banks. Other organisations offering financial services to the public require a compliance function and might use the services of a self-employed compliance consultant. Opportunities for compliance staff occur in towns and cities throughout the UK. Most opportunities are found in larger cities. A high percentage of financial services industry employees are based in London.

Self-employment opportunities occur for experienced compliance officers to work independently as self-employed consultants.

Where are vacancies advertised?

Vacancies are advertised in the following places:

Local/national newspapers.
Employers’ websites.
The Government’s Find a Job service.
Online Jobs Boards.

Entry routes and training

Many entrants are graduates with relevant experience in financial services, insurance, mortgages or investments. However you can enter this career path via a level 3 (advanced) apprenticeship as a compliance and risk officer. This way, you will do most of your training on the job while working towards relevant level 3 qualifications.

Compliance staff can progress to compliance management, head of compliance and/or director posts.

Rehabilitation of Offenders Act: In a large firm, the Compliance Officer might be on the board as a director and will therefore be an Approved Person. In this case, the post will be an exception to the Rehabilitation of Offenders Act 1974. This means that you must supply information to an employer about any spent or unspent convictions, cautions, reprimands or warnings, if they ask you to. This is different from other careers, where you only have to reveal information on unspent convictions if you are asked to.

Qualifications

Many compliance practitioners have a relevant degree and experience in financial work. For entry to a degree in finance or financial services, the usual minimum requirement is:

Two to three A-levels.
GCSEs at grades 9-4 in two to three other subjects.
English and maths GCSEs at grades 9-4.

Alternatives to A-levels include:

Edexcel (BTEC) level 3 National qualifications.
International Baccalaureate (IB) diploma. However, course requirements vary, so check prospectuses carefully.

To get onto an advanced apprenticeship, you will need GCSEs in English and maths, although you may be able to complete these alongside your programme.

Adult opportunities

Age limits: It is illegal for any organisation to set age limits for entry to employment, education or training, unless they can show there is a real need to have these limits.

Some entrants have a business- or finance-related background. New entrants could start in insurance or financial services and move into compliance functions when they have developed more general skills. Larger firms might recruit graduates with a legal or accountancy background.

If you don’t have the qualifications needed to enter your chosen degree or HND course, a college or university Access course (for example, Access to Business) could be the way in. These courses are designed for people who have not followed the usual routes into higher education. No formal qualifications are usually needed, but you should check this with individual colleges.

Sponsorship from some of the larger financial services firms can be available for those studying degree-level courses.

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