Describe a time when you discovered an investment transaction or strategy that did not comply with external or internal guidelines. How did you handle the situation?

During my time as an Investment Compliance Manager, I came across a situation where a senior executive in our firm was proposing an investment strategy that did not comply with our internal guidelines. Instead of immediately confronting the executive, I took a diplomatic approach. I scheduled a meeting with the executive to discuss the strategy and express my concerns. In the meeting, I presented a thorough analysis of the strategy, highlighting the areas where it deviated from our guidelines and the potential risks involved. I made sure to communicate my intentions to protect the firm and its clients. As a result, the executive realized the importance of compliance and agreed to modify the strategy to align with our guidelines. I then worked closely with the executive to make the necessary adjustments and monitored the implementation to ensure compliance. This experience taught me the importance of effective communication and diplomacy in handling non-compliant situations.

As an Investment Compliance Manager, I encountered a situation where an investment transaction did not comply with our internal guidelines. I discovered this during a routine review of investment transactions. I immediately brought the issue to the attention of the investment team and scheduled a meeting with the portfolio manager responsible for the transaction. During the meeting, I explained the specific guidelines that were violated and the potential risks associated with the non-compliance. I also provided alternative strategies that would comply with the guidelines while still achieving the investment objectives. The portfolio manager was receptive to my feedback and agreed to revise the transaction to comply with the guidelines. We collaborated closely to make the necessary adjustments, ensuring that all necessary approvals were obtained. I documented the entire process and presented it to the compliance committee for review and approval. This experience showcased my strong analytical skills, as well as my ability to interpret complex regulatory policies and guidelines. It also demonstrated my ethical judgment and integrity in upholding compliance standards.

In my role as an Investment Compliance Manager, I encountered a situation where an investment strategy proposed by a senior portfolio manager did not comply with both external regulations and our internal guidelines. This strategy involved significant exposure to a high-risk asset class, which exceeded the permissible limits outlined in our guidelines. Upon discovering this, I immediately scheduled a meeting with the portfolio manager to discuss the concerns and provide a thorough analysis of the non-compliance. I presented alternative strategies that would ensure compliance while still achieving the investment objectives. These strategies involved diversifying the portfolio across multiple asset classes and reducing exposure to the high-risk asset class. I also collaborated with the legal team to ensure that the proposed strategies complied with external regulatory requirements. The portfolio manager initially resisted the changes due to concerns about potential underperformance. To address these concerns, I conducted an in-depth analysis comparing the risk and return profiles of the original strategy and the proposed alternatives. I highlighted the potential benefits of the revised strategies, including improved risk-adjusted returns and enhanced diversification. This analytical approach helped alleviate the portfolio manager's concerns, and they ultimately agreed to modify the strategy to align with the guidelines. Throughout the process, I maintained open and transparent communication with senior management and the compliance committee, providing regular updates on the progress and reasons behind the decisions. This experience showcased my strong analytical and problem-solving skills in identifying non-compliance and proposing alternative strategies. It also demonstrated my ability to interpret complex regulatory policies and guidelines, as well as my ethical judgment and integrity in prioritizing compliance and client protection.