From the June 2009 issue of Investment Advisor • Subscribe!

Not Just the CCO

Sidebar to the Experts Corner "Complacency, Risk and the SEC"

While the chief compliance officer (CCO) should of necessity be the main player in the compliance review process, whenever possible I strongly recommend that at least one other firm officer be substantively involved in the review. It is imperative for senior management (an individual other than the CCO) to have a working understanding of the compliance processes and exam-related issues in the event of the CCO's absence or resignation or termination. The SEC is not likely to postpone an exam in the event of a CCO's extended absence or resignation/termination. Ultimately, senior management is responsible, and must be sufficiently prepared to step in if necessary. For these reasons, I strongly encourage senior management's participation in the compliance review process.

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