The field of Finance, including provision of financial services such as investment management in the financial markets, has experienced a profound sea change in the past few decades in terms of the methods used to perform these functions. This change increased the need in the United States for expertise and specialized knowledge often possessed by foreign nationals. Here we discuss the current landscape and options for both employers and foreign nationals seeking employment in this exciting area.
The traditional ways of investment research and analysis management of financial markets have changed drastically during this millennium. Creation and development of new fields of knowledge and the application and integration of that knowledge to investment analysis processes to increase speed and accuracy of investment research, analysis and decision-making has become the norm. Examples of these new modes of investment research and analysis, and the tools and strategies used to conduct them, include such areas as “Fintech” (Financial Technology) and the use of Information Technology (“IT”); Quantitative Finance and Quantitative Analysis (i.e. use of mathematics/statistics-based measurement models to analyze financial markets) and its more recent sibling Data Science; as well as Artificial Intelligence (“AI”), including its subfields of Machine Learning, Deep Learning and Reinforcement Learning.
These exciting and still developing fields of study and knowledge have a common denominator — the application of, and need for, expertise in/knowledge of “STEM” fields (Science, Technology, Engineering and Mathematics). Unfortunately, it can be safely said that over the past generation, the United States has not kept pace in terms of producing the volume of “homegrown” world-class experts in these STEM fields needed to maintain its place as a STEM leader, including in fields such as financial services and investment management. As a result, the employment of foreign nationals in these types of positions is essential for U.S. financial services firms to thrive in today’s competitive marketplace.
Immigration Options in Financial Services
U.S. immigration options for employers and foreign nationals seeking employment in financial services include the following:
“STEM OPT” post-degree training: many foreign nationals with interest in STEM fields of study are drawn to our globally ranked higher education system and pursue degrees here (both undergraduate and graduate) in F-1 student visa status. A common circumstance for these F-1 students is to utilize “Optional Practical Training” (“OPT”) to obtain valuable “hands-on” training and thereby develop practical expertise working with financial services firms after graduation. For only those who have earned STEM degrees in the United States, an additional 24 months of training-period eligibility (in addition to the standard post-graduation 12-month OPT period) is available and designated as “STEM OPT” training. This special extended eligibility period also can assist financial professionals in remaining with their U.S. employer longer than otherwise possible by affording them multiple attempts at entering the H-1B visa “cap lottery” through these sponsoring employers, while maintaining their F-1 OPT status for an additional two years.
H-1B visa status: The H-1B “specialty occupation” category is the most common temporary employment visa option available in the United States for foreign nationals. The H-1B status is available to those who have earned at least a bachelor’s degree (or equivalent) in a related field of study to the offered position (which must be a specialty occupation requiring the same). Due to the annual quota/”cap” used to provide H-1B classification, currently employers must sponsor and enter their hires seeking H-1B status in the annual “cap lottery” each March. Applicants selected in the cap lottery then have three subsequent three-month periods to file their petitions to obtain H-1B status, commencing the following October 1.
These days, in addition to the standard Finance fields of study, including Finance, Economics for Financial and Investment Analyst and Portfolio Manager positions, common fields of study and corresponding H-1B specialty occupations used in the Finance field include IT-types of degrees for Software Engineers/Developers types of positions; Mathematics, Statistics, Quantitative Finance and Computational Finance types of degrees for Financial Quantitative Analyst/Quantitative Analyst and Quantitative Researcher positions; Data Science types of degrees for Data Scientists positions; and now more specific AI-focused degrees, such as degrees in Machine Learning for AI-centered positions, including AI Research Scientists.
(Note that this H-1B analysis is also applicable to other visa categories/options that are identical to the H-1B category in substance, including E-3 visa status for Australian nationals and H-1B1 visa status for nationals from Chile and Singapore).
TN status: The TN work status pursuant to the United States-Mexico-Canada Agreement (formerly the North American Free Trade Agreement (NAFTA) ) is another option for Canadian and Mexican nationals, particularly when the H-1B quota cap has been reached for the year (there is no quota for TN status). While similar to the H-1B category, the eligibility is more limited, as the position must be legitimately defined as one that is listed under a relatively narrow list of occupations acceptable for TN status.
In the field of Finance, applicable positions commonly used to obtain TN status include the Engineer and Computer System Analyst TN occupations for IT specialists working in the Finance field. The Economist TN position category has also been utilized by financial services companies in the past. However, it is important to note this TN position category has been severely limited in its usability since the U.S. Citizenship and Immigration Services (USCIS) first adopted, in 2017, an extremely narrow definition of what constitutes an “Economist” position for TN purposes. The Economist category is now defined as more appropriate for positions consisting of more theoretical and macroeconomic analysis of broad economic conditions, and not those positions focusing on duties that include data collection and more focused microeconomic financial analysis of specific companies and industries, work normally performed by Financial and Investment Analysts at most investment management firms. The “catch-all” TN occupation category of Management Consultant can also be contemplated when applicable, although by its nature and similarly narrow definition, these applications will endure a particularly high level of scrutiny by USCIS.
L-1 visa status: For larger and more established U.S.-based firms with offices abroad, the L-1 intracompany transfer visa status can also be an attractive option, particularly when they desire to transfer employees abroad who have specialized knowledge and experience in performing financial and investment analysis of international regions and industries based abroad. Options here include the L-1A visa option for executive/managerial positions, as well as L-1B status for “specialized knowledge” employees. (Please also note that executives/managers transferred from abroad to similar-level positions in the United States have the option of using the corresponding Lawful Permanent Resident (“LPR”-aka the “green card”) category of EB1-C (EB1-3) Multinational Executive or Manager, to apply for “fast track” LPR status.
O-1 visa and EB1-A (EB1-1) and EB-2 options: As befitting the extremely complex and competitive nature of the Financial Investment field, particularly its use of Quantitative Research and Analysis, Data Science and AI-based investment strategies, “extraordinary” ability and “exceptional” ability categories for both nonimmigrant employment visa status (the O-1 visa status) and immigrant/Lawful Permanent Resident status, lend themselves well as options for the top performing experts in the field of Finance and Investment Management. Indeed, many foreign nationals working in this sphere have completed, during their graduate studies (or elsewhere), pioneering research projects in these subjects that are usually published in prestigious field publications. This work has often significantly advanced the study and knowledge of the most complex issues and questions currently existing in these fields of study. Indeed, foreign nationals often use this expertise and insight to perform essential and critical roles for their U.S. finance employers. Accordingly, the temporary O-1 extraordinary ability visa category, as well as its LPR EB1-A (EB1-1) counterpart, can often be utilized by investment management firms to procure employment authorization for these hires/employees. Other similar options, depending on the level of expertise and contributions already achieved by the foreign national, include EB “exceptional ability” LPR petitions and EB2 LPR “National Interest Waiver” petitions.
Immigration Assistance for the Financial Services Field
As clearly demonstrated above, the world of Finance and financial and investment analysis and management is a fascinating and complex field that continues to evolve. Fortunately, for U.S. employers seeking that “competitive edge,” U.S. immigration options are numerous and can be successfully utilized through the implementation of creative and forward-thinking legal strategies. Harris Beach Murtha’s Immigration Practice Group is well-versed in this practice and ready to assist both employers and foreign nationals with navigating this particularly vibrant and important landscape.
If you need assistance with this or related immigration matters, please reach out to attorney David H. Jacobson at (212) 313-5436 and djacobson@harrisbeachmurtha.com, or the Harris Beach attorney with whom you most frequently work.
This alert is not a substitute for advice of counsel on specific legal issues.
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