"I work in compliance for a hedge fund. The job is deeply unfair."

14 November 2024

3 minute read

A compliance officer at a hedge fund with burnout

Working for a hedge fund might sound prestigious to some, but if you're a compliance officer, the job is far from glamorous. I perform a critical role with vast responsibilities in a high-stakes environment, but I'm given few resources, and treated as a secondary player to the legal team. Because of this, I'm worn down, frustrated, and burned out.

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So much is piled on to us compliance officers. We oversee trade surveillance, manage regulatory filings, conduct compliance monitoring and handle governance tasks; we essentially have an all-encompassing mandate to keep the organization safe from regulatory missteps. On paper, it seems impressive, but the reality is that the work is exhausting and relentless.

Because I'm based in the UK, I'm subject to the Senior Managers and Certification Regime (SCMR), which makes me personally liable for failures in my area. My role carries criminal liabilities, a burden that few in the firm, even at senior levels, truly understand. There's a vast disconnect between this and our lackluster pay and bonus structure; it's hard to stay motivated when the stakes are so high, and the rewards are so disproportionately low.

Compliance has been getting more complex, demanding precision and efficiency. Investment into technology could make this less of a burden, but in reality, many hedge funds see compliance as a box to tick, rather than as an area worth genuine investment.

With inadequate tech and insufficient team members, we have to juggle everything from admin duties to regulatory oversight. I'm expected to handle it single-handedly, and it's deeply unfair.

It hurts that the firm's less experienced lawyer is held in higher regard than me. Despite my over 10 years of experience, it's common knowledge that I'm a second-class citizen compared to him. I've been directly told that I'll never be considered for a chief compliance officer (CCO) role because I'm "not a lawyer." The absence of a law degree has become an insurmountable barrier to advancement.

I can't even leave compliance, either. For all its demands and pressures, compliance requires a highly specialized skillset that doesn't translate well to other fields. The deeper you go, the harder it becomes to pivot; my skills are considered too niche and other paths become closed off.

And yet I hear some recruiters promote compliance as a good career choice. Maybe it was, once, back when the role was balanced and manageable. Now that's just a fading memory.

Wintson Trout is a pseudonym.

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AUTHORWinston Trout

Insider Comment

LE
LENEON
15 November 2024
Funny that people commented did not even read that this person works in a hedge fund. The hedge fund world is chaotic but not every hedge fund is like that. Pay is often a problem for the liability and workload. I think the solution is to change to a firm that values compliance. Not easy but it is possible
Reply
IA
IAMNOT
15 November 2024
My experience during my time at a major US bank in London was that the FICC Compliance Advisory function was largely inexperienced and lacked the business knowledge and commercial mindset to have useful discussions and generate thoughtful responses. Everything was 'taken away', where they would squirrel off and have conversations with other people and often just become a relay for other peoples messages and decisions.
There was also a tendency to forget they were a SUPPORT function, who often then moaned about having to do SUPPORT work...
Agreed 10y in Compliance is that sticky mid-level, not snr enough to promote, but too far along to change course without stepping back... but I have seen good, keen Compliance professionals pivot into other roles where they've been able to demonstrate they understand the business and markets and take personally accountability for planning out their own career horizon... Compliance had its day post-2008, has been on the decline for the past 5ys at least, can't see it getting better from here...
In terms of not feeling motivated to do your job when you're criminally liable for failures that may arise from not doing your job...I think that says it all.
1 reply
Mi
MissyB
14 November 2024
Compliance is a great career choice and yes it can be draining but I’m afraid this person’s challenges is unique to him/her. On this side of the pond, you are not held criminally liable for the failures of the firm (except if you obviously participate in fraud), I’ve never been seen as inferior to the legal dept (we work together or separate from each other) and it’s nuts that you can only be a CCO if you have a law degree. Most CCOs I have work with are not lawyers. In Fact, I think trained lawyers make the lousiest CCOs and the best are the ones that have worked in banking and know how systems and trading works. I’m afraid this person’s problem is more of the firm and less of compliance as a career.
2 replies