What Does a Compliance Consultant Do? A Guide for Financial Services Firms

 Keeping up with financial regulations is an ongoing responsibility for businesses operating in the UK financial services sector. FCA requirements, regulatory expectations and industry standards can change, and firms need to ensure their compliance arrangements continue to reflect those developments.

For many businesses, managing these responsibilities entirely in-house can be challenging. This is where a compliance consultant can provide specialist knowledge, practical guidance and additional support.

But what does a compliance consultant actually do, and when might a financial services business benefit from working with one?

What Is a Compliance Consultant?

A compliance consultant provides specialist advice and support to help businesses understand and meet their regulatory responsibilities.

In financial services, this can involve working with firms on areas such as FCA authorisation, compliance monitoring, regulatory reporting, financial crime controls, governance, policies and procedures, and regulatory change.

The exact role will depend on the firm's business model, regulatory permissions and specific requirements.

A consultant may work alongside an existing compliance team or provide additional expertise where a business does not have extensive internal compliance resources.

What Does a Compliance Consultant Do?

The responsibilities of a compliance consultant can vary considerably depending on the firm and the project.

Some common areas of support include:

• FCA authorisation and regulatory applications

• Compliance monitoring

• Regulatory health checks

• Policies and procedures

• Regulatory reporting

• Financial crime and AML frameworks

• Risk assessments

• Financial promotions reviews

• SMCR requirements

• Regulatory change projects

• Ongoing compliance support

For example, an investment firm preparing for FCA authorisation may require assistance understanding its regulatory obligations, preparing documentation and developing appropriate compliance arrangements.

An established firm may instead need independent compliance monitoring, a regulatory health check or support responding to changes in FCA requirements.

Why Financial Services Firms Use Compliance Consultants

Financial services businesses operate within a highly regulated environment, and regulatory requirements can be complex.

A business may have a capable internal team but still require specialist knowledge for a particular project or regulatory issue.

This is one reason financial services compliance consultants can provide additional value.

External consultants may bring experience from working across different firms, business models and regulatory situations. This can provide businesses with access to specialist knowledge without requiring every area of compliance expertise to be maintained internally.

For smaller firms in particular, external support can provide additional capacity while the business develops its own compliance function.

Specialist Experience Matters

Not every compliance consultant will have experience across every area of financial services.

The regulatory considerations for an asset manager may differ significantly from those affecting a broker, fintech business, private equity firm, hedge fund or capital markets business.

When selecting a consultant, consider their experience with businesses similar to yours.

Relevant experience may include:

• FCA-regulated investment firms

• Asset managers and fund managers

• Private equity and venture capital firms

• Brokers and trading businesses

• Fintech and payment businesses

• Capital markets firms

• Corporate finance firms

• Appointed Representatives

• Alternative investment managers

A consultant with relevant sector experience may be better positioned to understand the practical regulatory issues your business is likely to encounter.

What Compliance Services Can a Consultant Provide?

The scope of compliance services can range from a specific regulatory project to ongoing support.

Depending on the business, a consultant may assist with:

FCA Authorisation

Businesses applying for FCA authorisation may need support understanding regulatory requirements, preparing applications and developing appropriate compliance frameworks.

Compliance Monitoring

Independent monitoring can help firms assess whether their policies, controls and processes are operating as intended.

Regulatory Health Checks

A compliance health check can provide an assessment of existing arrangements and identify areas that may require further attention.

Regulatory Reporting

Some firms require support with regulatory reporting, prudential assessments or other regulatory submissions.

Financial Crime Compliance

Consultants may also support firms with AML, KYC, customer due diligence and wider financial crime frameworks.

Regulatory Change

When regulations or regulatory expectations change, businesses may need to assess the impact on their policies, systems and processes.

This is where ongoing compliance advisory support can become particularly useful.

Practical Advice Is Just as Important as Regulatory Knowledge

Understanding regulations is only one part of effective compliance.

Businesses also need to understand how regulatory requirements apply to their particular activities.

A useful compliance consultant should be able to explain complex regulatory requirements in practical terms.

For example, rather than simply identifying that a particular control is required, a consultant may help a business understand:

• What the control should achieve

• Who should be responsible for it

• How it should operate

• How it should be documented

• How its effectiveness can be monitored

This practical approach can make it easier for management and operational teams to implement compliance requirements effectively.

When Should a Business Consider Hiring a Compliance Consultant?

There is no single point at which every business needs external compliance support.

However, there are several situations where specialist assistance may be useful.

These can include:

• Applying for FCA authorisation

• Launching a new regulated business

• Entering a new market

• Introducing a new product or service

• Preparing for regulatory change

• Reviewing existing compliance arrangements

• Conducting a compliance health check

• Strengthening AML or financial crime controls

• Preparing for regulatory scrutiny

• Supporting an existing compliance team

Businesses may also seek external support when their regulatory responsibilities become more complex as they grow.

Compliance Consultancy for Growing Businesses

As a financial services business develops, its compliance requirements can become increasingly complex.

A growing firm may introduce new products, expand into additional jurisdictions, employ more staff or take on new regulatory permissions.

These changes can affect areas such as governance, reporting, risk management, compliance monitoring and financial crime controls.

Working with a compliance consultancy can provide access to additional expertise as these requirements develop.

The level of support can also change over time. A business might initially require assistance with a specific project before moving to a longer-term advisory arrangement.

Choosing the Right Compliance Consultant

Choosing a consultant should involve more than simply comparing fees.

Consider their:

• Financial services experience

• Regulatory knowledge

• FCA experience

• Sector-specific expertise

• Professional qualifications

• Previous consulting experience

• Understanding of your business model

• Range of compliance services

• Availability for ongoing support

• Approach to practical advice

It can also be useful to ask potential providers about the types of firms they have previously supported and the regulatory projects they have worked on.

Why Experience Within Regulation Can Matter

Experience within a regulator or in-house compliance environment can provide useful insight into how regulatory requirements operate in practice.

Some financial services compliance consultants have backgrounds that include working at regulators, financial institutions or established compliance consultancies.

This type of experience can help consultants understand both the regulatory perspective and the practical challenges businesses face when implementing compliance requirements.

For example, a consultant with previous FCA experience may bring familiarity with the authorisation or supervisory process, while someone with extensive in-house experience may have a deeper understanding of how compliance frameworks operate within financial services businesses.

Ongoing Compliance Support

Compliance is not usually a one-time exercise.

Once a business has established its compliance framework, it may still need to monitor controls, review policies, respond to regulatory developments and address new risks.

For this reason, some businesses choose ongoing compliance advisory support rather than relying only on individual projects.

Ongoing support may include:

• Regulatory updates

• Compliance monitoring

• Policy reviews

• Regulatory reporting assistance

• Risk assessments

• Ad hoc regulatory advice

• Support with new regulatory requirements

This can provide businesses with access to specialist expertise as their regulatory needs change.

Working With Experienced Compliance Professionals

A consultancy's people and their professional backgrounds can be an important consideration when selecting a compliance provider.

For example, ComplyCraft Consulting's team includes professionals with experience across the FCA, financial services firms and established compliance consultancies. Their backgrounds cover areas including FCA authorisation, compliance monitoring, MiFID II, AIFMD, SMCR, financial crime, regulatory change, capital markets and ongoing compliance support.

The team includes professionals with experience ranging from regulatory and supervisory roles to in-house compliance and consulting positions. The firm's People page also highlights experience across investment firms, asset managers, private equity and venture capital businesses, brokers, capital markets firms and other regulated businesses.

For businesses considering external support, reviewing the experience and expertise of the people who would actually work on their requirements can therefore be an important part of the selection process.

Choosing a Compliance Consultant in 2026

The role of a compliance consultant can extend well beyond providing regulatory documents or answering occasional questions.

For financial services businesses, external compliance support can cover authorisation, monitoring, regulatory change, financial crime, reporting, risk management and ongoing advisory requirements.

The right approach will depend on the firm's regulatory permissions, business model, internal resources and specific compliance needs.

Before appointing a consultant, businesses should consider the provider's regulatory experience, sector knowledge, practical approach and ability to provide support as requirements change.

A Simple Compliance Consultant Checklist

Before working with a compliance consultant, consider whether they:

• Understand your financial services sector

• Have experience with the FCA and relevant regulations

• Understand your specific business model

• Have experience with similar regulated firms

• Offer the compliance services you require

• Can provide practical and risk-based advice

• Have relevant professional qualifications and experience

• Can support both specific projects and ongoing requirements

• Communicate regulatory matters clearly

• Can adapt their support as your business develops

Choosing a consultant based on relevant experience and practical expertise can help businesses build and maintain a compliance framework that supports their regulatory responsibilities as they grow.