How Much Does It Cost to Hire a Compliance Consultant?

Who is a Compliance Consultant?

A Compliance consultant is a professional who understands all laws, rules, and regulations relating to the specific industry such as FinTech, gaming, etc. They aim to help companies identify practices and policies that may lead to violations and recommend changes to reduce potential risks of money laundering, terrorist financing, and illegal activities. Compliance consultants work either as individual providers or as part of a compliance agency.

Also Read: 5 Key Skills to Look for When Hiring Compliance Professionals

Understanding Costs and Services in Compliance

Often one of the first things we think about when we decide to work with someone and something else is “How much will it cost”? This is normal. A compliance professional can be a junior officer who helps perform check-the-box tasks without explaining or interpreting the regulations that shape those activities to the senior officers whose specific expertise is required to shape and execute a compliance program. incident. The average salary for a junior compliance officer is $40,000, but the average salary for a full-time compliance specialist can range from $100,000 to $250,000.

However, with compliance services, “what you get” must be compared to “what you pay for”.

If the job you are getting is your company registration, take the time to check your state or SEC website to see what documents you will need to complete the registration and promote your company. At the very least, ask the compliance officer you want to hire to prepare a personal list of documents to better understand the services offered. Companies often pay for the company registration, only to find that they need more documents after registration.

The next question is: How should a compliance consultant handle ongoing compliance?

When you list your company, some compliance consultants charge hourly for ongoing compliance while others may charge an ongoing monthly fee. Some professionals may offer “a la carte” services while others may purchase pre-packaged services. Business owners should carefully consider their business needs as they relate to the services they will need regularly.

The cost of a compliance consultant depends on the background of the compliance professional you wish to hire and the complexity of the project involved. This list details the different types of compliance officers and their associated salaries (Source: Zippia).

Also Read: How to Find and Hire Compliance Professionals?

Factors to Consider in Selecting a Compliance Consultant

Expertise

Does your project require a junior-level officer or do you need someone with enough experience to help you develop your skills and give you advice on how to get things done? If you are looking for good advice and guidance, you can start with a minimum of $100/hour and work your way up depending on the person, the complexity of the organization, and skills required, and their experience or formal regulations.

Branding Consideration

Decide whether you need a brand behind the project that you can present to the CEO, board of directors, and/or investors. Be prepared to pay for this padding at the firm-level branding costs.

Project Cost Estimation

Estimate how many hours it will take to complete this project. If you use the same methodology as compliance consulting firms (hourly rate x estimated hours = estimated project costs), you now have an idea of how much the project will cost.

Not sure how long a project will take? Think about the level of depth you want from the compliance consultant. Keep in mind that the more time they spend with you, the better they understand your business and the more they can perform on your compliance program.

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Conclusion

Hiring a compliance consultant can be a significant investment for any business, but costs can vary widely depending on several factors. It is important to carefully consider the scope of work required, the level of expertise required, and the cost structure that best suits your needs. While cost is certainly an important consideration, it is also important to note that the experience and guidance of a compliance consultant can help your business avoid expensive fines and legal issues in the long run. By carefully evaluating your needs and budget, you can find a compliance consultant that provides the right balance of experience and affordability for your organization.