What Else Is Out There? Legal Career Alternatives, Part XII – Financial Services
July 6, 2012 With the possible exception of healthcare (stay tuned for next week’s Law Careers blog), no economic sector has been hit harder in recent years by federal and state legislation and regulation than financial services. The legislative and regulatory barrage has resulted in a vast expansion of law-related job opportunities in the financial services sector.
Background--Why Industry Needs Lawyers
Four major legislative developments have transformed the financial services industry in the 21st century and kindled dramatic law-related job creation:
Financial Modernization Services (Graham-Leach-Bliley) Act of 1999
This law partially deregulated the financial services industry, foolishly eliminating the firewall that separated commercial banking from investment banking and that had served the national economy so well since the Great Depression. What was bad for the country proved very beneficial to attorneys seeking legal and law-related industry jobs.
Public Company Accounting Reform and Investor Protection (Sarbanes-Oxley) Act of 2002
The excesses of Enron and other companies led to this first foray into financial services “re-regulation.” Industry compliance requirements exploded and created demand for compliance professionals, many of whom came from the legal profession.
Wall Street Reform and Consumer Protection (Dodd-Frank) Act of 2010
This law, Congress’ direct response to the shenanigans and worse that caused the industry and greater economy meltdowns of 2008-2009, is still being implemented. It has vastly expanded the need for compliance professionals and risk managers.
Recent Bank Secrecy Act Amendments
A series of enactments have expanded the basic Act’s ability to go after fraud and questionable transactions while extending the law’s reach into additional economic sectors that, broadly interpreted, also constitute financial services. Both enforcers and defenders of alleged defrauders have benefited, career-wise, from these amendments.
To summarize, whether regulating or deregulating, the impact on attorney and law-related job creation is the same—very positive.
Employers
Financial services is a vast and increasingly complicated industry, comprised of tens of thousands of private sector organizations (banks and insurance companies being the most numerous) as well as a large number of public sector regulators and monitors at both the federal and state levels.
Major Federal Financial Services Agencies
- Federal Reserve Board
- Consumer Financial Protection Bureau
- Federal Deposit Insurance Corporation
- Department of Treasury
- Office of the Comptroller of the Currency
- Financial Crimes Enforcement Center
- Office of Foreign Assets Control
- Federal Insurance Office
- Securities and Exchange Commission
- Financial Industry Regulatory Authority (FINRA)[self-regulatory organization]
- Municipal Securities Rulemaking Board [self-regulatory organization]
- Public Company Accounting Oversight Board [standard-setting organization]
- Commodity Futures Trading Commission
- Federal Housing Finance Agency
- National Credit Union Administration
- Federal Financial Institutions Examination Council
- Government National Mortgage Association (Ginnie Mae)
- Federal National Mortgage Association (Fannie Mae)
- Federal Home Loan Mortgage Corporation (Freddie Mac)
- Farm Credit Administration
- Federal Agricultural Mortgage Corporation (Farmer Mac)
Global Reach
The financial services industry has gone global like no other, as evidenced by the accepted (and unfortunate) fact that, if Greece suffers a hiccup, Europe catches pneumonia and the U.S. comes away with, at a minimum, a very bad cold. In addition to the many multinational companies and international banks, insurers, etc., there is also an increasing number of international organizations that have a stake in monitoring, enforcing and attempting to control and mitigate economic disruptions caused by the industry. They include the following organizations that hire U.S. citizens:
- Organization of American States—Inter-American Drug Abuse Control Commission—Anti-Money Laundering Unit
- Inter-American Development Bank
- Asian Development Bank
- International Bank for Reconstruction and Development (World Bank)
- International Monetary Fund
- UN Economic Commission for Africa
- United Nations Office on Drugs and Crime—Global Programme against Money Laundering
- World Trade Organization—Secretariat—Trade and Finance and Trade Facilitation Division
- Organization for Economic Cooperation and Development—Directorate for Financial and Enterprise Affairs
- European Bank for Reconstruction and Development
- Financial Action Task Force on Money Laundering
- Bank for International Settlements
- The International Organization of Securities Commissions
- African Development Bank
- International Chamber of Commerce—Commercial Crime Services—Financial and Investment Fraud Bureau
- North American Development Bank
- Asia-Pacific Economic Cooperation (APEC)
Financial Services Law-Related Job Titles
The following law-related job titles mesh well with a law degree are often populated by attorneys. Primary employers are listed in parentheses following job titles where the nature of the employer is not obvious from the job title.
- Bank International Trade Specialist
- Bank Investment Compliance Officer
- Bank Probate Administrator/Officer
- Banking Enforcement Advisor (state bank regulators)
- Bankruptcy Analyst (Office of the U.S. Trustee)
- Benefits Professional (insurance; employee benefits consulting firms)
- Capital Market Consultant (investment banks)
- Carbon Transactions Manager (corporations; international development agencies)
- Chapter 13 Trustee
- Claims/Settlement/Termination Specialist
- Commercial Lending Manager
- Community Reinvestment Act Director (banks)
- Compliance Manager
- Compliance Officer--Bank Regulation
- Compliance Officer--Commercial Banking
- Compliance Officer--Commodities
- Compliance Officer--Securities
- Compliance Representative
- Compliance Trust Officer
- Conflicts of Interest Oversight Officer (banks)
- Consumer Affairs Examiner (government)
- Consumer Response Specialist (banks)
- Corporate Finance Executive
- Credit Examiner
- Employee Benefits Trust Administrator
- Equities Compliance Officer (securities firms)
- Escrow Agent
- Estate/Fiduciary Administrator
- Estate and Financial Planner
- Financial Enforcement Specialist (government)
- Financial Institution Examiner (government)
- Financial Planner/Planning Analyst
- Financial Services Sales Agent
- Futures Trading Investigator (government)
- Investment Banking Officer
- Legal Advertising/Sales Literature Manager (banks; insurance; securities firms)
- Legal Fee Auditor/Legal Cost Specialist
- Legal Product Manager-Corporate
- Legal Product Manager-Private Label Funds
- Legal Product Manager-Securities/Brokerage
- Loan Administrator/Specialist
- Loan Workout Officer
- Mergers and Acquisitions Specialist
- Mutual Fund Administrator
- Pension Benefits Examiner (U.S. Pension Benefit Guaranty Corporation)
- Pension Law Specialist (IRS)
- Probate Accountant
- Public Finance Consultant
- Regulatory Control Officer
- Securities Compliance Examiner (government)
- Securities Firm Executive
- Securities Transactions Analyst
- Trust Advisor
- Trust Benefits Specialist
- Trust Business Development Professional
- Trust Examiner (government)
- Trust Officer/Administrator
- Trust Property Manager
- Trust Risk Analyst
- U.S. Trustee/Assistant U.S. Trustee (Offices of the United States Trustee)
- Workers' Compensation Auditor
Selected Financial Services Law-Related Job Web Sites
These are in addition to the organizations listed above:
Selected Membership Organizations
Monitoring these organizations' doings can be invaluable for aspiring financial services industry candidates:
American Association of Bank Directors
International Association of Hedge Funds Professionals
National Association of Bond Lawyers
National Association of Insurance and Financial Advisors
Bolstering Your Financial Services Credentials
AIB Banking and Finance Diploma
AIB Personal Trust Diploma
- Association of Certified Anti-Money Laundering Specialists—Certified Anti-Money Laundering Specialist (online)
- Boston University – Metropolitan College—Graduate Diploma Program in Banking and Financial Services
- Credit Union National Association—Regulatory Training & Certification Program
- Florida International University—Certificate in Banking
- Hedge Funds Association—Certified Hedge Fund Compliance Expert (online)
- Institute of Certified Bankers
Certified Regulatory Compliance Manager (CRCM)
Certified Corporate Trust Specialist (CCTS)
- Keller Graduate School of Management of DeVry University—Graduate Certificate in Financial Analysis
- Lorman Education Services—Certificate of Banking Compliance
- Northeastern University—Financial Institutions and Markets Certificate
- University of the Pacific—Banking Leadership Certificate Program
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