2018’s Chief Compliance Officer

A key message we picked up at a recent conference was how the role of the Chief Compliance Officer (CCO) has changed dramatically in progressive buy-side firms.

Think about how historically the role of the Chief Financial Officer (CFO) was belittled and marginalized with throwaway descriptions of bean-counters. Not too long ago, similar descriptions of the CCO as a chief box-ticker were thrown around with abandon. The office of the CCO was simply seen as a necessary evil in response to the onslaught of regulation faced by firms; an office whose only function was to produce audit tick sheets and ensure the correct ticks ended up in the right boxes.

Today the CFO is seen as a strategic partner that adds value across all aspects of the business and rightfully has a chair at the senior executive table. Similarly we are seeing an evolution of the CCO position within firms that have a strategic regulatory response in their DNA.

Key points I picked out of the panel discussions were:

  • The CCO should act as, and be seen as a strategic partner to the business
  • The CCO should be a member of the senior executive team in their own right, and not an adjunct to the GC/CFO
  • The CCO should focus on growing the breadth of skills and capability in their organization to respond to the needs of the new demands on compliance

The CCO in the CCO 2.0 office establishes the tramlines in a clear and unambiguous manner, allowing the firm to operate fearlessly in pursuit of the returns demanded by investors. They seek to engage the business agenda in a clear and unambiguous manner. They are facilitators that shine a light on the righteous path rather than erecting barricades on the paths of regulatory darkness.

Barricades are not necessary when the correct road is well sign posted!


Subscribe to CSS Blog

CSS frequently publishes blog posts which are written by our team from their observations in the field, at conferences and through experiences with compliance professionals. These posts are designed to further knowledge and share industry best practices. Topics run the gamut, including Form ADV, cybersecurity, MiFID II, position limit monitoring, technology challenges and more. Complete and submit the brief form below to receive notifications when we publish new content.

Loading form...

Latest Content

Advertising Issues: SEC and GIPS Performance in the Private Fund Space

Over a year ago, OCIE released the Risk Alert, “The Most Frequent Advertising Rule Compliance Issues Identified in OCIE Examinations of Investment Advisers.” While the alert highlighted several areas where performance advertising is involved, our recent CSS/Ascendant conference panelists in a session entitled “Best Practices for SEC and GIPS Performance in the Private Fund Space” … Continued

Placing Ethics and Compliance in the Foreground of Business Decision-Making

Thinking about how to make ethics and compliance part of a business’s decision-making can prove to be challenging. By nature, compliance professionals are often results-oriented, focusing on a binary end-result; either you are in compliance, or you are not. That focus is important, but emphasizing process is also vital, John Walsh, Partner at Eversheds Sutherland … Continued