9.10.2009 The Independent Directors Council (IDC) issued a report, “Board Oversight of Fund Compliance,” on the characteristics of a strong mutual fund compliance program, which it says should include: (1) an ethical, compliance-focused “tone at the top”; (2) a collaborative approach by the fund’s chief compliance officer (CCO); (3) a risk-based program tailored to the fund and the adviser’s business; (4) transparency and candor among the CCO, fund board and adviser; and (5) knowledgeable staff armed with appropriate resources, according to a new task force report of the IDC. The report also examines the role and responsibilities assigned to the CCO, compensation structures for the CCO, and board practices for evaluating the compliance program and the CCO, which vary widely across the industry.

Click http://www.ici.org/pressroom/news/09_news_idc_cco_paper to access the release. Click http://www.ici.org/pdf/idc_09_compliance.pdf to access the report.