The cost of fraud to the nation rose to nearly £16 billion last year, according to a survey published last week by Norwich Union, the insurance company. That’s 1.4 per cent of the UK’s entire economic output, or £650 per household.

The Financial Services Authority (FSA), whose job it is to protect UK investors, takes a tough stance on financial crime, including fraud, money laundering and market abuse — and it needs commercially-minded graduates to help it to police one of the world’s biggest savings and investment markets.

Regulation is an appealing career for graduates and postgraduates who want to be involved in the City but are keen to act in the public interest rather than to make money for a bank or investment company. A graduate who works for the FSA puts it this way: “It’s really satisfying work but you do need to be more altruistic than the sharp cookies in investment banking. If big money and fast living are what turns you on, then you and altruism will have to part company.”

Apart from the FSA there is the Pensions Regulator, which oversees occupational pension schemes, and the ombudsmen, whose job it is to examine and judge claims of mis-selling sent in by the investing public. “Solving these cases can lead to compensation worth thousands of pound for the victims,” says a law graduate working for the Financial Ombudsman Service.

Then there are the trade and professional organisations, such as the Association of British Insurers and the British Bankers Association, whose job it is to liaise with government and regulators on policy and to promote high standards among their members. The accountancy, law and securities institutes play an important role in setting standards and in overseeing professional qualifications.

All of these types of organisations employ numerate graduates with economics, mathematics, accountancy and legal skills and most have a graduate development programme, which can be an excellent way to get to grips with the operation and regulation of the City. The FSA also offers a PhD scholarship in Economics of Financial Regulation in a joint venture with the London School of Economics.

“It’s not all about catching crooks, though,” says another graduate trainee at the FSA. “A lot of what we do is preventative, such as vetting companies to make sure that they are treating customers fairly or checking new products to make sure that high-risk investments aren’t sold as safe and guaranteed to little old ladies.”

Salaries — about £22,000-£28,000 depending on qualifications — are less than those in investment banking or management consulting. But a few years with a regulator can lead to a more lucrative career. “For financial institutions, compliance and regulation is important and gets increasingly complex,” says Victoria Alkiviades, a compliance specialist with the recruitment company Barclay Simpson. “If you are proactive, can take a high level of responsibility and demonstrate a keen commercial awareness, then your second job could be worth £35,000 a year.”

Justin Russell, a compliance specialist with the recruitment company MRL Financial, says that with a three or four-year track record you can look for jobs at associate level in investment banking and capital markets, for example. “If you can demonstrate a good understanding of the market and have excellent relationship-management skills then you can expect a salary of £55,000-£65,000,” he says.

Debbie Harrison is a senior visiting Fellow at Cass Business School. Read previous articles in the series at www.cass.city.ac.uk/thetimes .

Next week: What it’s like working for the financial services media.

What's it really like?

Do you think that the hours and stress City workers endure are outrageous, or do you believe they are more than compensated for by the large salaries and bonuses on offer? In our Working in the City series, Debbie Harrison has spoken to recruiters and the recruited to find out what it’s really like to work in the Square Mile.

Catch up with the series online, and join the debate. Readers are invited to send their questions to our panel of experts: Polly Courtney, the author of "Golden Handcuffs"; Hugh Karseras, a director in a City bank and the author of "From New Recruit To High Flyer"; Clare Harris, head of graduate recruitment at Lovells, a law firm; and Debbie Harrison. They will be available from March 22 to answer your questions on working in the City.

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