A few good compliance officers

That 39 percent of survey respondents said compliance officers have told them not to engage in something within regulations is an issue that begs a closer look.

“This has become such a common complaint that I think it needs to be addressed in the industry,” says the woman who conducted the survey, Katherine Vessenes, president of Vestment Advisors Inc. “One possible reason is that it is difficult to get experienced and competent compliance personnel. So possibly these incorrect edicts are the results of newer, under-trained compliance staff.”

Vessenes continues to say another factor could be broker/dealers who have been burned many times in the past and have decided to “take the rules, and then tighten them even more, to protect themselves. Either way, it is confusing to registered reps and not necessarily helpful to the investors.”

We want to know what you think. Is there really a problem here? Is the industry is being hampered by unqualified or overcautious compliance officers?

You need to be able to achieve compliance in a way that doesn’t disrupt your business. Compliance needs to be embraced as a business process to be managed over time, but it certainly shouldn’t be taking up one-fifth of your time.

If this is an issue that is impacting your business, please take a minute and e-mail your comments to [email protected]. What you say will help to form the basis of how we approach our coverage of compliance.