How to Be Investment Compliance Analyst - Job Description, Skills, and Interview Questions

Feb 29, 2020 / 5 Minutes Read / By Albert

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Investment compliance analysts are an integral part of the financial industry, ensuring that all investments comply with applicable laws and regulations. Without investment compliance analysts, firms would be unable to verify that their investments meet the necessary requirements and could face significant legal, financial, and reputational risks. By reviewing policies, procedures, and reports related to investments, compliance analysts can identify potential violations and take the necessary steps to mitigate the risk of non-compliance.

They also play an important role in developing and implementing compliance plans for firms, evaluating internal controls and procedures, and educating stakeholders on applicable investment laws. The effectiveness of investment compliance analysts is essential for companies to maintain regulatory compliance and protect their bottom line.

Steps How to Become

Obtain a Bachelor's Degree. To become an investment compliance analyst, you will need at least a bachelor's degree in a field related to finance, accounting, economics or law.
Gain Relevant Experience. It is important to gain relevant experience in the financial services industry. You may want to look into internships or entry-level positions that will provide you with the necessary knowledge and skills.
Obtain Professional Certifications. To become a successful investment compliance analyst, you should pursue professional certifications such as the Certified Investment Compliance Professional (CICP) or the Chartered Investment Compliance Analyst (CICA).
Stay Up to Date on Regulations. The financial services industry is constantly changing and evolving, so it is important that you stay up to date on the latest regulations and compliance laws.
Develop Strong Analytical Skills. Investment compliance analysts must have strong analytical skills in order to analyze financial statements, documents and other data.
Develop Good Communication Skills. Good communication skills are essential for investment compliance analysts as they must be able to communicate effectively with clients and colleagues.

Investment compliance analysts are responsible for ensuring financial markets adhere to all applicable laws, regulations, and ethical standards. Keeping up to date and competent in this field requires staying abreast of developments in the industry, such as changes in laws and regulations, as well as shifts in market trends. Investment compliance analysts must also remain familiar with the various tools used to monitor the market and their effectiveness in detecting discrepancies or violations.

they must be knowledgeable about the principles of responsible investing, including risk management and financial literacy, in order to make sound investment decisions. investment compliance analysts are required to have a deep understanding of the industry in order to remain competent and effective in their role.

You may want to check Investment Banking Technology Associate, Investment Performance Analyst, and Investment Analytics Manager for alternative.

Job Description

Perform ongoing reviews of complex investments to ensure compliance with applicable regulations, laws and firm policies.
Assist in the development and implementation of internal compliance policies and procedures.
Monitor and analyze changes in relevant regulatory requirements, and assess the impact on existing investments.
Maintain records of all compliance-related activities and prepare periodic reports for management.
Analyze investment performance to ensure compliance with investment objectives.
Monitor trading activities to identify any potential violations of internal policies and procedures or applicable laws and regulations.
Participate in the investigation of any violations that occur, and recommend corrective actions.
Review client agreements and ensure that they are in compliance with applicable rules and regulations.
Provide advice and guidance to investment professionals on legal and regulatory issues.
Coordinate with external legal counsel on legal matters related to investments.

Skills and Competencies to Have

Knowledge of regulatory requirements and industry best practices regarding investment compliance
Ability to analyze financial portfolios and identify any potential compliance violations
Proficiency in financial analysis and reporting software programs
Strong organizational, research, and problem-solving skills
Excellent communication skills, both written and verbal
Demonstrated ability to collaborate with other departments to ensure compliance
Ability to interpret and explain complex laws, regulations, and policies
Demonstrated experience in developing and executing compliance plans
Working knowledge of financial markets and products
Ability to prioritize tasks and work under pressure to meet tight deadlines

Investment Compliance Analysts must possess a variety of skills to be successful. These include critical thinking skills, an understanding of the financial markets, and the ability to spot potential risks. Having analytical and problem-solving skills is vital for Investment Compliance Analysts to evaluate investments and take corrective action when needed.

They need to be able to effectively communicate with clients and colleagues in order to explain the potential risks of investments and develop strategies to mitigate them. staying up-to-date on regulatory changes and understanding the implications of those changes on investments is essential. Having good research skills and the ability to identify patterns and trends in the market will help Investment Compliance Analysts make informed decisions.

With these skills, Investment Compliance Analysts can help protect their clients investments and ensure their financial success.

Investment Banking Technology Analyst, Investment Banking Intern, and Investment Banking Summer Intern are related jobs you may like.

Frequent Interview Questions

What experience do you have in investment compliance?
How do you stay up to date on regulations and industry trends?
How do you handle tight deadlines and multiple responsibilities?
What are your top three qualities that make you a great investment compliance analyst?
Describe a project that you have worked on that involved compliance research.
How do you ensure accuracy of data when completing compliance reports?
What strategies do you use to identify and mitigate risks?
What challenges have you faced while working in investment compliance?
How do you collaborate with other departments to ensure compliance with regulations?
Describe a time when you successfully identified and corrected a compliance issue.

Common Tools in Industry

Bloomberg Terminal. An advanced desktop terminal that provides access to financial market data, news, analytics and trading capabilities. (Example: Real-time stock prices, research reports, and corporate actions)
NICE Actimize Compliance Lifecycle. A comprehensive compliance solution that helps Investment Compliance Analysts automate and streamline their workflows. (Example: Automated monitoring and alerting for various regulatory requirements)
Investran. A software solution for managing private equity investments. (Example: Tracking portfolio performance, automating investor distributions, and monitoring fund compliance)
Charles River Investment Management System (CRIMS). A comprehensive suite of solutions for asset managers that allows for monitoring of portfolio and risk management, compliance and order management. (Example: Model-based portfolio construction, automated risk limits and compliance checks)
AxiomSL. A cloud-based software platform that provides a unified view of data across different investment compliance processes. (Example: Automated reporting, data reconciliation and analytics)

Professional Organizations to Know

Investment Management Consultants Association (IMCA)
Chartered Alternative Investment Analyst Association (CAIA)
CFA Institute
National Society of Compliance Professionals (NSCP)
Securities and Exchange Commission (SEC)
Financial Industry Regulatory Authority (FINRA)
North American Securities Administrators Association (NASAA)
National Ethics Association (NEA)
Association for Investment Management and Research (AIMR)
National Futures Association (NFA)

We also have Investment Research Analyst, Investment Product Manager, and Investment Operations Manager jobs reports.

Common Important Terms

Investment Compliance. A set of regulations, standards, and procedures that need to be adhered to by individual investors and financial institutions in order to ensure the safety and stability of the financial markets.
Regulatory Compliance. Following a set of rules and guidelines established by a regulatory body such as the SEC, FINRA, or CFTC.
Anti-Money Laundering (AML). The process of identifying, preventing and reporting on suspicious activities that could be related to money laundering.
Know Your Customer (KYC). The process of verifying a customers identity and financial profile before entering into a business relationship.
Financial Crime Prevention. Detecting, preventing and reporting financial crimes such as fraud, bribery, corruption and money laundering.
Regulatory Reporting. Reporting data to the regulatory bodies such as the SEC, FINRA, or CFTC in order to comply with their rules and regulations.
Client Suitability. Assessing a customers financial profile to ensure that they are suitable to invest in certain products or services.

Frequently Asked Questions

Q1: What is an Investment Compliance Analyst? A1: An Investment Compliance Analyst is a professional responsible for ensuring that an organization's investments adhere to the regulatory laws, industry standards and company guidelines. Q2: What are the main responsibilities of an Investment Compliance Analyst? A2: The main responsibilities of an Investment Compliance Analyst include monitoring investments, performing risk assessment reviews, developing and implementing compliance policies, and conducting investigations and audits. Q3: What qualifications are needed to become an Investment Compliance Analyst? A3: To become an Investment Compliance Analyst, one must typically have a bachelor's degree in accounting, finance, economics or a related field, plus knowledge of relevant regulations such as the Investment Advisers Act of 1940. Q4: How much does an Investment Compliance Analyst typically earn? A4: The average salary for an Investment Compliance Analyst is around $72,000 per year. Q5: What organizations employ Investment Compliance Analysts? A5: Investment Compliance Analysts are employed by a range of organizations, including financial institutions, investment firms, mutual fund companies, and hedge funds.

Web Resources

Investment Analyst PRINCO - Princeton University princo.princeton.edu
Compliance Officer / Analyst | NC State Online and Distance online-distance.ncsu.edu
(PDF) Financial Compliance Analyst Ad - Academia.edu www.academia.edu