Compliance officers play a crucial role within financial services and are responsible for ensuring an organisation adheres to regulations and internal policies.
Compliance officers use their regulatory knowledge to work in collaboration with the financial planning team. Their role involves completing file checks to ensure these comply with regulatory standards and internal policies, assisting with training and competency supervision and maintaining records and logs on compliance.
Compliance officers are often seen as the last line of defence for an organisation, protecting firms, advisers and clients.
There is no minimum qualification requirement for compliance roles, so job vacancies vary in terms of what they ask for. Having said that, it is common for employers to expect applicants to be RQF level 4 qualified. So, if you are looking to increase your options and develop your career, achieving a relevant qualification will put you in a competitive position.
Many compliance officers will have achieved or be working towards a level 4 qualification. The main examining bodies offering qualifications are:
Before choosing which qualifications to take, we recommend you do some research into the methods of assessment used by the examining bodies. Some examinations are multiple choice, others are written answers. Some qualifications are assessed using just exams, some use a mixture of coursework and examination, others are heavily coursework based. Each individual will have their own preferences so deciding on a route that best suits your strengths is an important step.
It is also worth considering the qualification preferences of the firms you are hoping to work for; find out if they favour one route over another.
At BTS, we support the CII route so the information in this profile focuses on some of the main qualifications offered by the CII. Below you will find an overview of the CII Diploma in Regulated Financial Planning and the CII Advanced Diploma in Financial Planning, along with links to detailed information on each of the exams that make up the qualifications.
The CII Diploma in Regulated Financial Planning is an RQF level 4 diploma made up of six core modules, commonly referred to as the R0 exams. There are six compulsory R0 exam units.
There is no set order in which to take the units, you can sit them in any order you choose. For candidates new to the industry, we usually recommending starting with R01 Financial services, regulation and ethics as this provides a sound knowledge base which is relevant to each of the other units. Then, we recommend taking R05 Financial protection as this is a level 3 unit with no multi-response questions. It is advisable to take R03 Personal taxation and R02 Investment principles and risk fairly closely together as there is significant syllabus cross-over between these two units. R04 should usually be attempted as the penultimate unit due to the knowledge required from the other units. The R06 Financial planning practice unit is usually sat as the final exam as it draws on knowledge and understanding from each of the other R0s.
The CII Advanced Diploma in Regulated Financial Planning
is a level 6 qualification. It is becoming increasingly common for compliance officers to pursue level 6 qualifications and even achieve Chartered status.
To complete the Advanced Diploma, candidates must already hold either the CII Diploma in Regulated Financial Planning or the Diploma in Financial Planning. The Advanced Diploma is made up of a selection of units totalling 290 credits. Candidates must sit one mandatory unit, the AF5 Financial planning process (30 credits). The remaining credits can be made up of a combination of units. A total of 120 credits must be at level 6, taken from the AF exams (including the AF5), a further 40 credits must be at level 4 or above (the J0 and R0 exams), and the remaining 130 credits can come from any unit except LF1. The tables below shows the AF and J0 unit options. The CII Qualifications Framework shows the full range of CII units, their level and credit value.
A great option for compliance officers is to undertake study of AF6, which is the Senior Management and Supervision module offered by the CII. This develops candidates ability to apply and evaluate supervision principles and practices within financial services.
Achieving Chartered Status
In order to apply for Chartered Status with the CII you will need to:
· Hold the Advanced Diploma in Financial Planning
· Have five years’ relevant industry experience
· Be a CII or PFS member and adhere to the CII’s Code of Ethics and Conduct
· Demonstrate three years’ existing Continuing Professional Development (CPD) and commit to maintaining this activity
Compliance can be a career in it’s own right, and whilst you can initially start as a compliance officer, you can look to move into a compliance manager role and into a senior management role.
Alternatively, some use compliance as a stepping stone into becoming an adviser.
The opportunities for development within compliance are endless.
Many compliance professionals are now pursuing advanced qualifications to develop their expertise, including AF6.
Compliance officers work within financial planning teams in a range of settings including; wealth management firms, financial advice firms, or specialised advice firms.
