While we could probably list dozens of attributes that a competent chief compliance officer SHOULD have, we have come up with 6 that they MUST have. An informal survey of CCOs revealed that the very the first attribute – a keen understanding of the regulatory landscape – has been the most difficult to master.
- Have a keen understanding of the regulatory landscape (i.e., best practices, rule changes, SEC red flags, proposed rule changes).
- Have complete familiarity with the advisory firm’s compliance policies and procedures (including code of ethics and disaster recovery).
- Have detailed knowledge of the firm’s advisory business, client-base, operations and personnel.
- Have the ability to foster a culture of compliance.
- Have an understanding of how the firm uses technology and any resultant vulnerabilities.
- Have the skill-set to supervise all aspects of the firm’s compliance program, including the annual risk assessment, annual review and compliance testing.
