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← Back to HomeCareer GuideHow to Become a
How to Become a
Fractional Compliance Officer
Step-by-step guide to building a career as a fractional compliance officer in the UK. Qualifications, experience, setting up, finding clients, and pricing.
£150k+
Earning Potential
10+
Years Experience
2-4
Clients Typical
Becoming a fractional compliance officer offers experienced compliance professionals the opportunity to build a portfolio career with higher earning potential, greater flexibility, and exposure to diverse clients and sectors.
The UK market for fractional compliance has grown significantly, driven by FinTech expansion, regulatory complexity, and cost pressures on regulated firms. For compliance professionals with the right experience and credentials, fractional work can be both financially rewarding and professionally fulfilling.
Is Fractional Compliance Right for You?
Fractional work suits self-motivated professionals comfortable with business development, variable income, and managing multiple client relationships. It's less suited to those who prefer job security, employer-provided benefits, and deep integration with a single organisation.
Roadmap
Step-by-Step: Becoming a Fractional Compliance Officer
1
Build Your Foundation
Develop the experience and credentials needed for fractional work
- •Accumulate 10-15+ years compliance experience in FCA-regulated firms
- •Obtain FCA SMF approval (SMF16 or SMF17) at least once
- •Gain ICA qualifications (Certificate, Diploma) or CISI credentials
- •Develop sector expertise (FinTech, payments, investment, crypto)
- •Build a track record of successful compliance outcomes
2
Develop Your Specialism
Focus on high-demand areas where you can command premium rates
- •Consumer Duty implementation and ongoing compliance
- •Crypto and digital assets AML/KYC
- •Payments and e-money (EMI/PI) compliance
- •FCA authorisation support
- •Operational resilience and third-party risk
- •Client assets (CASS) compliance
3
Set Up Your Business
Establish the legal and administrative infrastructure
- •Incorporate a limited company (or assess sole trader option)
- •Register for VAT (if expecting £90k+ turnover)
- •Obtain professional indemnity insurance (£1-2m minimum)
- •Set up business banking and accounting
- •Develop standard engagement terms and contracts
- •Understand IR35 and determine your likely status
4
Build Your Network
Create referral relationships and visibility
- •Update LinkedIn profile for fractional compliance positioning
- •Connect with compliance recruiters (Bruin, Robert Walters, etc.)
- •Approach compliance consultancies for associate work
- •Network with lawyers and accountants serving FinTech
- •Join ICA, CISI, and compliance professional networks
- •Consider speaking at events or writing articles
5
Find Your First Clients
Secure initial engagements to build your portfolio
- •Reach out to former colleagues and contacts
- •Register with compliance interim recruiters
- •Approach newly FCA-authorised firms (check FCA register)
- •Offer to sub-contract for established consultancies
- •Consider one client while still employed (if permitted)
- •Start at competitive rates to build track record
6
Scale and Optimise
Build a sustainable portfolio career
- •Gradually increase day rates as demand builds
- •Target 2-4 concurrent clients for income stability
- •Balance SMF roles with advisory work for flexibility
- •Develop recurring retainer relationships
- •Consider building a small team or associate network
- •Invest in CPD and staying current with regulatory change
Credentials
Qualifications and Experience
Essential Experience
- 10-15+ years compliance experience in FCA-regulated firms
- 3-5+ years in senior compliance roles (Head of, CCO, Senior Manager)
- Direct experience with FCA regulatory requirements and interaction
- Previous SMF approval (SMF16 or SMF17) highly valued
- Experience building compliance frameworks and leading teams
Professional Qualifications
While not mandatory, these qualifications enhance credibility:
- ICA qualifications — International Compliance Association Certificate/Diploma
- CISI — Diploma in Investment Compliance
- Legal qualifications — Solicitor or barrister qualification (valued for regulatory roles)
- AML certifications — CAMS, ICA Advanced Certificate in AML (for MLRO roles)
Sector Expertise
Developing deep expertise in specific sectors increases your marketability and rates. High-demand sectors include:
- Crypto and digital assets — FCA registration, Travel Rule, custody
- Payments and e-money — EMI/PI compliance, safeguarding, PSD2
- Consumer credit — CONC, affordability, Consumer Duty
- Investment management — MiFID II, CASS, best execution
Practicalities
Setting Up Your Business
Business Structure
Most fractional compliance officers operate through limited companies:
- Tax efficiency through salary and dividend combination
- Liability protection (though PI insurance remains essential)
- Professional image for client engagements
- Ability to claim business expenses
IR35 Consideration
Many fractional compliance engagements, particularly SMF roles, may be caught byIR35. This means you may be taxed as an employee despite working through a limited company. Factor this into your pricing and financial planning.
Professional Indemnity Insurance
PI insurance is essential—clients will require it. Coverage should include:
- Minimum £1 million cover (many clients require £2 million)
- Coverage for regulatory advice and compliance consulting
- Run-off cover for claims arising after engagements end
- Typical annual cost: £1,500-£4,000
Pricing
Pricing Your Services
Day Rate Guidelines
- Entry-level fractional (10-12 years exp): £800-£1,000/day
- Experienced (12-15 years, SMF history): £1,000-£1,200/day
- Senior (15+ years, CCO experience): £1,200-£1,500/day
Pricing Strategies
- Start competitively: When building your client base, consider rates slightly below market to secure initial engagements
- Value-based pricing: For high-stakes work (authorisation, remediation), price based on value delivered
- Retainer discounts: Offer 5-10% discount for committed retainer arrangements
- Regular reviews: Increase rates annually as your reputation and demand grows
FAQ
Common Questions
Most fractional compliance officers have 10-15+ years of compliance experience in FCA-regulated firms, including 3-5+ years in senior compliance roles (Head of Compliance, CCO, or senior manager level). For SMF16/SMF17 roles, you typically need prior FCA approval history. Consultancy roles without SMF accountability may accept 8-10 years experience.
Common qualifications include ICA (International Compliance Association) Certificate or Diploma, CISI Diploma in Investment Compliance, and/or legal qualifications (solicitor/barrister). While not mandatory, these demonstrate professional competence. More important is practical experience and track record in FCA-regulated environments.
Fractional compliance officers earn £800-£1,500 per day, depending on seniority and SMF accountability. Working 3 days per week across clients, annual earnings range from £115,000-£230,000. Most start with 1-2 clients and build to 3-4, optimising for income while maintaining quality.
Yes, professional indemnity (PI) insurance is essential. Most clients require £1-2 million minimum cover. PI insurance protects against claims arising from professional advice. Expect to pay £1,500-£4,000 annually depending on coverage level and claims history.
Most fractional compliance officers operate through limited companies for tax efficiency and liability protection. Ltd company structure allows dividend payments, pension contributions, and expense deductions. However, consider IR35 implications—many engagements may be caught by IR35, particularly SMF roles.
First clients typically come from: your professional network (former colleagues, clients, contacts), compliance consultancies seeking associate capacity, recruitment agencies with interim/contract desks, LinkedIn outreach and content, referrals from lawyers and accountants serving FinTech, and direct approaches to newly authorised FCA firms.
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