CAREER DILEMMA

Hi, This is addressed to all; I recently was approached by the Chief Compliance Officer in my company and was offered an analyst position. I’ve been doing my research and it has come to my attention that it is one of the least pursued fields by finance professionals which translate into low competition and great opportunities for advancement. However I am pursuing the CFA designation (level 2 candidate) and I feel that entering in to such a field would limit my opportunities in the investment industry. Currently I am financial accountant and I am thinking of exit strategies into more financially rewarding careers and have been finding it tough to get any interviews with a reputable organization in the investment industry (they’re either looking for someone who works for the big 4 or someone with a track record; both of which I don’t have) I thought about switching to compliance and at the same time continue to chase an analyst position in the investment industry, however let’s be realistic there’s not much skill that I can acquire from compliance that is in common with the skill set of an equity analyst. This is the dilemma that I’m facing right now. Compliance (offer right now on the table) versus Financial Analyst (no current offer). Your thoughts and advice would be appreciated. Thanks, DXB

Depending on what type of accounting you are doing, I think you would be moving further away from resesearch…analysis if you accepted the position in compliance. In my opnionion, if you are analyzing or building financial statements where you work now, you are on the right path to moving into equity research if thats what you are looking to do. In addition, if you know you want to move into an analyst position, all you will be doing by accepting this position is presenting yourself on paper (resume) as a confused person that does not know what they are looking for…and also a job hopper, depending on the length of stay in each position. Dont accept the job.

What’s your goal? Do you want a more “financially rewarding career” or do you want to be an analyst? Also, what kind of firm do you currently work for?

I currenlty work as a compliance analyst for a major asset management company and I face a similar dilemna in that I want to move to equity research. You are right though… there are tonnes of opportunities in compliance. On one hand I look at the equity analysts in my compnay and wish I could have their jobs… on the other I look at my department head who makes great bank and travels around the world staying in 5 star hotels on the company dime and know I could be there in another 5-8 years. It is a tough choice. If you want to know more about the compliance gig I may be able to give some specific answers though.

if you care more about money than insteresting work compliance is the place for you.

oskigo Wrote: ------------------------------------------------------- > if you care more about money than insteresting > work compliance is the place for you. compliance makes more than equity research?

Is compliance really that bad? How much can you expect to make say 4-5 years in?

Hey guys, I work for a commodities exchange in the Middle East… And I have to agree with aic that making a move to another career and later on trying to switch in to equity research would make me seem like a job hopper! However, 90% of the pple doing their CFA all want to be analysts…looooooool The competition is immense… Sometimes it’s better to take facts in to consideration when making a decision… PMwannaB, are there any entrepreneurial exits for someone working in compliance, and if yes what exactly would you be doing?

Compliance is a great place to learn… but that’s about it. You’re are dealing with the back end and that’s about it. Compliance people think they are in control of the day-to-day trading decisions, but when they get word from “the top”, they must comply to their wishes. So, if you were to stay there, I would question your sanity…

DXB - As for entrepreneurial exits, I am not sure about this. I am relatively young and haven’t thougth that far ahead to be honest. I work with one person who has their CFA and FRM as well quite a few years experience with a few good firms and heads up the derivatives monitoring. That role seems quite interesting and presents a possibly avenue to head towards. It is not terrible entrepreneurial though since it would still involve working for ‘the man’. As for BosyBillup’s comment though… I don’t really agree. When the traders call 'cause they are trying to buy a block of stock that is violating compliance rule, we end up with the final say. “The Top” is fiancially liable for anything bought that conflicts with the investment guidlines and we compensate the clients for mistakes made that result in losses. The PM’s do a lot of kicking and screaming when we say they can’t buy something but in the end we get the final say since an error can create a legal nightmare, not to mention cost a lot of money.

Depends on the firm and location obviously. I will net 70K this year all in. But i work offshore so I don’t pay taxes. Maybe up that to 90 in 4 or 5 years.

hey PM wannaB what do you think your compliance role could lead to a Investment analyst role ?? What are the chances of that if you choose to go in that direction ?

No I don’t think so unless I pull a u-trun. But like DXB said, there are a lot of develping opportunities in compliance. So there is a chance it could lead to something… But hey if I don’t like where I am at in another year or two I will go get an MBA and try to get a gig in research perhaps.

“I thought about switching to compliance and at the same time continue to chase an analyst position in the investment industry,” That statement makes me chuckle. Compliance folks are akin to the devil in the eyes of the front office. Not sure they would ever let you cross over. If I saw a resume for an analyst position come across my desk and the candidate had compliance anywhere on it I would immediately think—annoying little prick!! : )

E. analyst how would a cv look from a candidate working for a regulator like the SEC or the FRB? How would that type of experience be looked at? Would it be worse than compliance? I was under the assumption that compliance was a good way to get into the front office?

great discussion guys, the CCO of the company passed by my desk the other day askin me if i’ve made a decision yet…told him that i’ll passby his office by the end of the week…it’s salary negotiation time!! got 6 years of experience, 2 as a financial advisor, 2 as a fund accountant and another 2 as a financial accountant. Alright guys what target should i aim to get, i’m thinkin 75-85k…what are your thoughts on that ?