Does compliance officer role in AM help you transition to equity reasearch?
I'm living in Germany and have the chance to break in to compliance in a very large AM. The company is very open about position transitioning within company. I'm planning to do CFA and have background in stats. Could you recommend me how should i prepare myself to transition in to equity research in the future?
Based on the WSO Dataset, transitioning from a compliance officer role in asset management (AM) to equity research (ER) is not the most common path, but it's definitely possible, especially in a company that supports internal mobility. Here’s how you can prepare for this transition:
CFA Certification: You mentioned planning to do the CFA, which is a great decision. The CFA Charter is highly regarded in the finance industry, including equity research. It will provide you with a strong foundation in financial analysis, ethics, and investment management, which are crucial for ER.
Develop Technical Skills: While working in compliance, start building your financial modeling and valuation skills. You can use online resources or formal training programs like those offered by Breaking Into Wall Street (BIWS) or Wall Street Prep. These skills are essential for ER roles.
Network Internally: Since your company encourages transitioning within, use this to your advantage. Connect with members of the ER team. Express your interest and seek advice on how to make the transition. Internal networking can often lead to opportunities that external candidates might not get.
Understand the Markets: As a compliance officer, you might already have a good grasp of regulations and compliance issues. Complement this by gaining a deep understanding of the markets and sectors you are interested in covering in ER. Follow market trends, read industry reports, and analyze financial news.
Engage in Relevant Projects: If possible, get involved in projects or tasks that overlap with equity research. This could involve anything from risk assessments that require deep dives into company financials to projects that involve market analysis.
Showcase Your Skills: Prepare to demonstrate your analytical capabilities and market knowledge in your current role. This could help in getting a recommendation from your current department when an ER position opens up.
Prepare for Interviews: Be ready to discuss why you want to move from compliance to ER. Develop a compelling story that ties your background, skills, and passion for the market together. Practice behavioral and technical questions that are commonly asked in ER interviews.
By following these steps and leveraging your background in statistics along with your CFA pursuit, you can position yourself as a strong candidate for a future role in equity research.
Sources: Q&A: Equity Research Associate at a Boutique Firm, Q&A: Sell-Side Equity Research today, What to do Pre-MBA to prepare for IB recruiting, Helpful Resources For Breaking Into Equity Research, Future of Equity Research - 12+ Months into MIFID II
Working in compliance will not help you break into ER at all. Very different jobs and skill sets. Compliance to risk to ER makes a little more sense as a path. If they are open to internal transfer its worth a shot. Build a relationship with ER team early so they remember you when a spot opens up.
My recommendation, if it's the best offer you have, is to take it and do the best job possible. Start networking, moving towards the CFA, and I'd be on the lookout for quant type roles that could utilize your stats background - you may look at whichever AM it is, as there are plenty of teams/needs for that type of background in/around investment teams.
For equity research specifically - it's networking, the CFA, building your skillset, networking again, and biding your time. As I mentioned above, if there's some type of quant team or strategy role that, say, builds models or does data analysis to support the investment teams - that may be another bridge to get you closer.
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