In the last two decades, the need for regulatory compliance has increased exponentially, especially in heavily-regulated industries like the healthcare and financial services industry. That has led to companies hiring various compliance officers and compliance analysts.
Usually, the compliance team works together with the risk and legal teams to ensure all compliance policies are updated and that there’s sufficient risk management. Compliance analysts play a role by offering potential recommendations based on careful research and analysis.
In this article, we’ll take a closer look into the roles, job duties, job responsibilities, and abilities of a regulatory compliance analyst.
What Does a Compliance Analyst Do – Typical Roles in Organizations
The compliance analyst has a duty to maintain legal and regulatory compliance by researching, analyzing, and communicating regulatory requirements and obtaining the appropriate approvals.
However, some people and even organizations often mix up different job types. In this case, the compliance analyst job title is often used instead of the compliance officer job title. There are lots of job alerts on various job boards that list a compliance officer as a compliance analyst. That leads to confusion among jobseekers who are looking for clearly defined career paths.
Companies consider both positions as related jobs; this, putting them under a single category. However, there are slight differences in both positions. But, there are some duties, roles, and responsibilities that overlap for both the compliance officer and compliance analyst.
Smaller organizations tend to mix both roles by using the same template for both roles. The compliance analyst job description usually includes the roles of both compliance analysts and compliance officers. However, medium-sized and larger organizations often distinguish between the two roles.
In the United States, a large organization usually has an entry-level compliance officer, compliance analyst, senior compliance analyst, compliance specialist, compliance manager, and a chief compliance officer or corporate compliance officer.
In any case, the compliance analyst works along with other compliance officers and the compliance head. They help support the compliance program and plan by researching and analyzing relevant rules, laws, and regulations. Furthermore, they play a vital role in compliance audits and analyzing program effectiveness.
When a compliance head has to do a survey, they usually appoint the help of a compliance analyst. The primary reason for that is that the compliance analyst is expected to have complete and foremost knowledge of all regulations of the industry according to the organization and their projects.
What Does a Compliance Analyst Do – Duties and Tasks
Every compliance analyst has slightly different duties, tasks, and responsibilities due to varying job descriptions. Depending on the size and organizational structure of the organization, the duties can expand or contract. However, there is a clear set of duties and tasks that every compliance analyst should be able to perform.
In any case, the following duties, tasks, and responsibilities are what the typical compliance analyst has to manage.
- Report to the senior compliance analyst, compliance manager, compliance head, corporate compliance officer, or chief compliance officer with the necessary analyzed information regarding laws and regulations.
- Research different laws, rules, and regulations by reviewing regulatory bulletins, federal updates, news briefs, and other sources of information.
- Keep other departments, including the legal, human resources, finance, and other departments, updated on regulatory requirements, documentation processes, and regulatory filling information. You may have to write and communicate guidelines to relay the information to various employees.
- Compile all the information by collecting and coordinating rate deviation filings. Update necessary information and provide overviews of all product and service disclosures.
- Obtain the necessary approvals from upper management by revising relevant forms, rates, and other documentation.
- Prepare compliance reports based on the extensive collection, analysis, and summary of compliance information.
- Review internal and external policies on compliance standards and recommend changes if necessary.
- Maintain a good relationship with the regulators and regulatory bodies by developing better contracts and resolving concerns on time.
- Ensure that the same organizational standards are being followed throughout the organization in terms of compliance.
- Maintain a working knowledge of essential laws and regulations, such as the anti-money laundering (AML) law, GDPR data privacy regulations, and more.
The responsibilities, duties, and tasks listed above are what every compliance analyst should be able to do. However, organizations may include compliance officer duties too.
What Does a Compliance Analyst Do – Skills and Abilities
Compliance analysts can have varying duties and tasks, but the skills, qualifications, and abilities required remain the same. The only difference comes with the industries as compliance analysts are expected to have the relevant knowledge and certifications of a specific industry.
On average, the compliance analyst is expected to have the following qualifications, skills, and abilities.
- A bachelor’s degree in accounting, business, or any related field that’s relevant in the industry.
- A master’s degree is a preference and not a necessity.
- At least two to five years of experience in compliance auditing, compliance analysis, or as a compliance officer is needed. It’s best to have prior experience in the same industry and a similar organization.
- It’s advisable to have a background in auditing, compliance, or any other regulatory field.
- You need to be able to work your way around all Microsoft Office products, including Word, Excel, SharePoint, Outlook, and PowerPoint. Furthermore, it’s advisable to have a working knowledge of any relevant software in auditing and analysis.
- Excellent research and analysis skills are needed to find and examine new and existing laws, rules, and regulations.
- Critical thinking skills are required to develop workable solutions for any new analysis.
- Problem-solving skills are needed to rectify any compliance issues that may pop up during compliance audits.
- Excellent communication skills are needed to work with other compliance officers and heads effectively.
- It’s crucial to showcase technical proficiency and have strong verbal and written communication skills to relay information efficiently.
- Follow-up skills are needed to keep up with various projects, tasks, and compliance plans simultaneously.
- There is a need to be detail-orientated to meet strict deadlines and match compliance standards.
The qualification, skills, and abilities listed above are what each compliance analyst should possess. However, you should work on also getting industry-specific certifications and knowledge.
How to Become a Compliance Analyst
Since the compliance analyst and compliance officer jobs often overlap, their salaries overlap too. However, you can find the average salary of a compliance analyst on various salary sites.
According to Glassdoor, the average salary for a full-time compliance analyst in the United States can be rounded up to $55,229. Furthermore, the average salary range is between $38,000 and $79,000, with the upper end being offered in major hubs like New York and San Francisco.
The compliance analyst salary mostly depends on the organization and industry. If it’s a heavily-regulated industry, it will require more years of experience, more knowledge, and better qualifications; thus, improving the salary. Other than that, it depends on the organization and its overall structure. If the organization is massive, compliance analysts get paid more than compliance officers on average. However, smaller organizations tend to develop their compensation packages according to the overall workload.
Compliance analyst jobs are mostly considered entry-level research jobs. Therefore, you don’t need a lot of prior experience to become a compliance analyst. However, it isn’t a completely entry-level job that you can opt for without any experience. You need some prior experience in auditing, compliance, or industry-specific fields.
Other than that, it’s crucial that you understand various research and analysis skills. A large part of the job is to find and update yourself on rules, laws, and regulations. That means that there will be a lot of reading and skimming off various sources of information.
Therefore, training yourself to be detail-orientated also helps because you can find relevant information faster.
It’s also advisable to keep a working relationship with the regulators, regulatory bodies, and other regulatory personnel.
In any case, you should portray yourself as a fair auditor and by-the-book analyst.
Becoming a Great Compliance Analyst
Becoming a great compliance analyst is about getting the right kind of experience in the right industry. That means you should decide on an industry and work getting the appropriate knowledge on that industry’s laws and regulations. Then get a compliance or audit job to get the necessary experience. When you have adequate experience, you can apply to be a compliance analyst.
It’s also best to keep a good relationship with regulators and regulatory bodies.
More importantly, work with fellow compliance professionals and assist them in their duties to get a better idea.
Most importantly, avoid any conflicts of interest and work in the interest of both the company and the law.