Andrew Donohue, SEC’s Chief of Staff, in a recent speech to investment management professionals, appeared to provide encouragement to those persons who serve as chief compliance officers of registered investment advisory firms, to continue with their important work in creating and maintaining strong compliance programs and providing investor protections.
While recent enforcement actions by the SEC against CCOs might serve to discourage persons from serving in that role, Mr. Donohue’s recent comments should help to support and encourage persons to serve as CCOs. Donohue stated that the SEC’s staff will continue to work with CCOs in support of their efforts and strive to better understand the problems and concerns that CCOs have in installing and maintaining effective compliance programs.
According to Mr. Donohue, the SEC seeks to provide compliance professionals such as CCOs with important resources to help them do their jobs, through published regulatory updates, risk alerts, and examination priorities.
Donohue emphasized that compliance professionals need to keep up with regulatory changes and adjust their firm’s business practices and risk controls accordingly.