Regulatory Compliance in Finance is Becoming More Stringent
After the financial crisis in 2008, the US congress, federal government and local governments began to look much more closely at the rules governing the financial industry. A rash of new laws and regulations were passed seeking to limit the risk taking of financial firms and limit the potential damage to consumers from financial transactions. The passage of Dodd-Frank in 2010 capped this trend as the government put a much bigger burden of regulatory compliance in finance click here.
Today, there is a much greater emphasis on compliance in the financial industry. Compliance jobs are in much higher demand in years past. These jobs are becoming more high profile, well-compensated and crucial to the functioning of financial organizations.
Regulatory positions carry so much weight not only due to the fact that there are new rules, but also because the government is so aggressively pursuing misconduct and issuing massive fines to banks and other financial institutions. Between 2009 and 2014, the financial sector paid over $184 billion to the government in fines for a variety of misdeeds including excessive risk taking, mortgage fraud, money laundering, bid rigging. Bank of America paid over $24 billion alone, much of it due to the sins of its subsidiary Countrywide that manipulated millions of consumers and misstated the value of its assets.
New regulations passed under the Dodd-Frank law include limits on the types of derivatives banks can hold, the amount of capital from depositors that is loaned and the types of investments that banks can make. In addition, it created the Financial Stability Oversight Council and Orderly Liquidation Authority to wind down systemically risky institutions that become insolvent. These issues in particular create a larger burden for financial institutions and a greater need for compliance personnel.
Overall, this segment of the financial industry will continue to be hot for hiring and growth. Experts in this field will be in high demand.