Compensation for compliance experts has been stagnant over the past few years, but that situation should be improving soon, largely thanks to the Dodd-Frank Act.
Compensation for financial services compliance experts has been stagnant over the past few years, but that situation should be improving soon, largely thanks to the Dodd-Frank Act, according to a study by National Regulatory Services.
The compliance consultant conducted an online survey of around 400 compliance professionals from a mix of financial firms and consultants in March and April. Salary, which ranged from less than $40,000 to more than $250,000 with a median of around $100,000, was almost identical to responses from its last survey, in 2008. The group also didn't report any uptick in their budget for 2011, but NRS managing director John Gebauer said that compensation and budgets, held back by the recession, will improve dramatically.
“I expect that the slope of this trend line will rise rapidly in the coming year as the demand for qualified compliance personnel increases to fulfill the requirements of Dodd-Frank and to bolster the staff of newly registered private funds,” Mr. Gebauer said. Although those surveyed said they expect their compliance budget to be flat for the year, they also said that compliance spending is likely to be shifted to technology and away from education, consulting and outsourcing due to expected demands stemming from new regulation.
The repeal of the exemption of private-fund managers from registration as investment advisers will also increase demand for compliance officers, which will also help drive up compensation, the report said.
