22 May 2023

5 Ways to Propel Your Compliance Career in Singapore

Compliance, Risk & Governance

The compliance function continues to play a critical role in ensuring adherence to laws and regulations and upholding ethical conduct in the financial industry. In addition to core sectors such as retail and wholesale banking, wealth and asset management, global markets, etc, with trends in rapidly expanding areas like sustainability and digital financial transactions, all of which require compliance, compliance professionals in Singapore have ample opportunities to advance their careers.

A prominent trend is the increasing popularity of digital financial transactions. Consumers gravitate to these given the convenience, speed and often superior client experience and customer interface of mobile apps for banking and payments. In an environment where financial transactions occur at an accelerated pace, so do related financial frauds and scams, and compliance professionals who are specialised in financial crimes are crucial in preventing and detecting such crimes, then helping to trace and recover assets.

Competent and skilled professionals, along with robust compliance measures, play a pivotal role in balancing growth, innovation, and effective risk management. With that in mind, professionals in this field face unique challenges. They must proactively enhance their skills, stay abreast of evolving regulations and regulatory expectations, navigate the complexities of cross border, transnational regulatory landscape successfully, understand and utilise new technologies available to differentiate the signal from the noise in what warrants further investigation (or not), and make the right ethical call.

A recent interview with compliance veteran Sharon Craggs, Principal Programme Director of Compliance, Risk & Governance at Wealth Management Institute (WMI) and a former Global Head of Compliance, shed rich insights into what it takes to succeed in a compliance career and to remain competitive in Singapore’s fast-paced environment.

Hone your technical competencies

A thorough understanding of laws, regulations, industry standards, and regulatory expectations is critical in compliance. Compliance professionals must stay up-to-date with the latest developments and understand the implications for their organisations.

Finance knows no borders, and clients, transactions, and financial institutions are often based in different jurisdictions. The regulatory landscape is constantly changing, making it essential to engage in continuous learning and education. Therefore, compliance officers must keep pace with both the complexity and volume of new regulations that are continually be promulgated, across all the jurisdictions where their institution conducts business. Over time, these increasingly scale as with each new crisis, comes an additional raft of regulations to address this, whereas taking down regulations from the statute book is a much slower process.

Compliance professionals shoulder a tremendous responsibility, according to Sharon. “They are entrusted with ensuring the completion of the entire compliance cycle, which involves risk identification and assessment, managing regulatory change, compliance advisory, implementation of policies and procedures, training and education and monitoring, surveillance and testing, and assessing the effectiveness of compliance outcomes.”

Embody moral courage

Compliance officers in banks must possess moral courage as they are responsible for ensuring that the bank operates within legal and ethical boundaries, and protect their institutions from reputational and financial harm.

Compliance officers act as a line of defense against financial crime and fraud. It is their duty to investigate unusual transactions, raise uncomfortable questions and be persistent in obtaining answers, then make a decision whether to report suspicious activities to regulatory authorities.

As Sharon points out, “Compliance professionals must be able to make difficult decisions that may not always be popular. Being able to form a point of view and stand up for it is critical in compliance. They must also be prepared to take ownership of their decisions and be accountable for their actions.”

They may encounter situations where they are pressured by management or colleagues to overlook potential violations and may even face retaliation for raising concerns. In these situations, they must be able to speak up and challenge management or other stakeholders when necessary.

Ensure stakeholder management and risk alignment

“Compliance professionals must be able to communicate complex information in a clear and concise manner to various stakeholders. They must be able to adapt their communication style to different audiences, including regulators, line and senior management, as well as all levels of staff,” says Sharon.

“Compliance officers need to understand the priorities of each stakeholder and manage them adroitly to create the right outcomes. This requires strong relationship-building skills and the ability to manage competing priorities.”

It is also important for compliance professionals to work for organisations whose risk appetite is aligned with their own. This will enable them to carry out their duties with a clear conscience and without cognitive dissonance. It is therefore paramount that those who want to thrive in their compliance careers assess an organisation’s compliance risk appetite and determine if it aligns with their own values and principles.

Demonstrate passion and never stop learning

“Passion for doing and ensuring the right thing is done is a key characteristic of the most successful compliance professionals. Whereas Compliance roles command decent compensation, compliance officers must be motivated by the goal of ensuring that their organisation does the right thing, and this extends beyond technical legal requirements. One person who stands up, can make a difference,” says Sharon.

Continuous learning and education are essential for staying competitive in the compliance field. Keeping up-to-date with the latest developments and trends in the industry requires an ongoing commitment to learning and development. This includes actively attending industry events and proactively upskilling and pursuing relevant certifications to expand their knowledge and skills.

Harness the Power of Technology and Data

Technology is transforming all sectors of society and finance, and the compliance function is no exception. Compliance professionals must embrace this change. In financial services, understanding and manipulating large volumes of data, and harnessing the power of machine learning for compliance risk management, is a competitive advantage. An example is, where analysts need to determine and prioritise whether a financial transaction is suspicious and warrants further investigation, or is in line with the profile of the customer.

This involves sifting through gigabytes of data and extracting useful information. Compliance officers across the board must have a basic understanding of technology and data analytics to stay competitive in the field.

Sharon, who attained a Master’s degree in Digital Innovation and Financial Technology from Brandeis University Boston, USA, identifies that “being tech-savvy and understanding how to harness technology and utilise data to solve risk management problems is key for compliance professionals to adding value in today’s field”.

Conclusion

Compliance professionals are guardians of integrity and ethics in the financial industry. As they navigate the ever-changing landscape of regulations and technological advancements, they must remain committed to honing their skills, embracing new technologies, and upholding the highest standards of professionalism. In an increasingly interconnected and digital world, their role is more important than ever, ensuring trust, stability, and ethical practices across the industry.

Hone your competencies in sought-after skillsets with Wealth Management Institute’s (WMI) Compliance. Beyond equipping aspiring compliance leaders with technical knowledge, WMI’s programmes provide participants access to an invaluable network of industry heads and fellow peers. Attendees stand to gain from the leading faculty’s wealth of experience and real-world case studies.

Learn more about WMI’s compliance courses today!

Environmental, Social, Governance (ESG)

3 Reasons Why Private Bankers Should Learn About ESG

Programme Overview

3 Reasons Why Private Bankers Should Learn About ESG

The financial sector is experiencing significant shifts in a critical area—sustainability—alongside ongoing technological transformations. Traditionally, financial strategies have focused predominantly on maximising returns; however, a growing awareness of their environmental impact is giving rise to a new paradigm—one that today’s professionals may find challenging to navigate.

As more investors and institutions prioritise sustainability in their financial decision-making, recognising the long-term benefits it offers, the trend driven by the Environmental, Social, and Governance (ESG) framework is fundamentally reshaping our approach to wealth creation and responsible stewardship.

Mervyn Tang, who is Schroders’ Head of Sustainability, APAC, highlights three compelling reasons why private bankers should enhance their understanding of ESG to better serve their clients and future-proof their careers.

ESG: A Global Imperative Reshaping Investments

What was once a secondary consideration has now become a global imperative. The response to ESG issues, particularly climate change, is transforming how economies operate. “Governments around the world are putting policies to battle issues like climate change,” Mervyn says. “It’s changing the business models (and) the way our economy operates.”

As organisations navigate new regulations and seek incentives, such as those for electric vehicles, they must strike a balance between upfront costs and long-term objectives—ensuring their capital investments deliver sustainable returns over time.

Already, economies covering 90% of global GDP have set net zero targets, and over half of the world’s largest companies are aligning themselves with this vision. The results so far have been encouraging, with market research platform Gitnux reporting in 2024 that companies with strong ESG credentials have seen a 3-5% increase in annual revenue growth. Those with high ESG ratings also consistently outperform competitors who neglect them.

This shift creates a new role for private bankers. They’ll need to understand how these policies affect different industries, determine which are the reliable markers to prove sustainability, and how to position client portfolios for a sustainable future.

“Private bankers would be expected to talk about changes in sustainability and ESG policy in the same way as they are meant to talk about energy price inflation or Fed interest rates,” he surmises. “You’ll be expected to know more about ESG in the future.”

The senior professional explains how these fundamental concepts are discussed in WMI’s Certificate in Introduction to Climate Change and Decarbonisation Strategies programme. Besides gaining a broad perspective on topics such as climate science and international agreements in order to understand the global push for sustainability, the curriculum also includes training in core skills to assess and advise on green products and initiatives.

With outlets like Bloomberg indicating that the world’s ESG assets are projected to hit $40 trillion by 2030, informed finance professionals will stand out with their enriched knowledge and become invaluable assets to their clients’ evolving investment journey.

A Growing Emphasis Across Generations

The rise of ESG investing is not just shaped by policies. It is being fuelled by increasing demand from individuals, particularly younger generations.

“The general public is caring more about ESG,” Mervyn reveals. “You see this in search trends for things like sustainable investing and climate change.”

Figures from PricewaterhouseCoopers substantiate this observation, with a report citing that a whopping 83% of consumers expect companies to actively shape their ESG best practices, and that 76% would discontinue relations with companies which mistreat employees, communities and the environment.

“This is particularly apparent for younger generations like Gen Z or the millennials,” Mervyn notes.

A Stanford University study supports this, revealing that while only 30% of boomers were invested in ESG issues when it comes to their investments, this grew to 60% with Gen X, and became a pronounced 80% with Gen Zs and millennials.

“If these generations are more interested in sustainable investing, as we see the intergenerational transfer of wealth, more and more of your clients may want to talk about ESG in the future,” he predicts.

As ESG considerations grow increasingly complex, effective ESG investing requires integrating all three pillars—environmental, social, and governance—into the decision-making process. Beyond environmental factors, social considerations evaluate a company’s labour practices, diversity and inclusion policies, and its impact on the communities in which it operates. Governance focuses on leadership quality, transparency, and risk management practices.

WMI’s programme provides advanced modules that delve into these areas, equipping professionals with the skills to assess the right metrics and deliver comprehensive reports that support informed discussions on sustainability. By considering all three pillars of ESG alongside traditional financial analysis, private bankers can help investors capture an organisation’s long-term potential.

A Sustainable Future Unlocks New Investment Opportunities

In response to this accelerating trend, the financial sector is embracing the increasing demand for sustainable investment options.

“Sustainable investing options are increasing,” notes Mervyn, referencing both market trends and insights from his work at Schroders. “We’re talking about equities, fixed income, private assets. There’s a lot of things that your end retail investor can invest in to achieve their sustainability objectives and their financial objectives.”

The same report by Github reflects this sentiment in Asia, where 60% of retail investors have shown particular interest in ESF-focused funds, and that with the exception of Japan, allocation to ESG investing is expected to surge over 20% in Asia over the next five years.

Furthermore, the rise of digitalisation is democratising access to sustainable investments. Platforms such as crowdfunding now enable individuals to invest directly in emerging opportunities like green bonds and carbon offset initiatives—areas once limited to large institutional investors.

Rather than viewing this as competition, Mervyn emphasises that these developments highlight the need for complementary expertise. Informed private bankers can leverage their knowledge and these new tools to enhance their client offerings.

“More products means more options for your end clients to deliver what they need,” he says. “This is partly one of the reasons why asset managers are building up their sustainable investment product ranges. We see funds evolving from just your general sustainable funds to lots of different themes, to even direct private assets investing in things like renewable infrastructure.”

There’s more and more investment options for you to help cater to your clients’ financial objectives as well as sustainability objectives,” he adds.

Conclusion

The integration of ESG considerations into financial strategies is no longer a niche movement but a crucial complement to traditional finance. As private bankers navigate an evolving landscape, a solid understanding of ESG frameworks, reporting, and products becomes a vital tool for building resilient portfolios, managing risks, and fostering a more sustainable future.

WMI’s ESG programmes embrace this shift, offering a practical and industry-relevant syllabus designed by leading experts. Through engagements with senior professionals like Mervyn, participants gain real-world insights and case studies, equipping them to apply their knowledge effectively post-graduation—for the benefit of their organisation, clients, and the planet.

Learn more about WMI’s ESG Programmes