Recent enforcement actions have made it clear that Chief Compliance Officers are at risk of personal exposure if regulatory violations happen under their watch. The New York City Bar Association recently released a report calling on financial regulators including the SEC and FINRA to adopt a comprehensive and analytical framework for holding CCOs personally liable for violations.
The report recommends that regulators weigh affirmative factors when evaluating CCO liability, including:
- Does the CCO Conduct Charge help fulfill the SEC’s regulatory goals?
- Did the CCO not make a good faith effort to fulfill his or her responsibilities?
- Did the Wholesale Failure relate to a fundamental or central aspect of a well-run compliance program at the registrant?
Building robust supervisory structures that clearly define roles and responsibilities can help limit potential CCO exposure. Join MCO and Scott Noah, Of Counsel at Stevens & Lee, for the on-demand webinar Minimizing the Risk of CCO Liability.
The presentation provides practical guidance on how the right supervisory structure can reduce the risk of CCO liability, including:
- Current standards for CCO liability
- Compliance vs. supervision
- The importance of the Empowered CCO
- Developing policies, procedures and controls tailored to a firm’s business model
- Managing the role of the CCO serving multiple functions
- How technology provides the backbone of an effective supervisory structure
Do your goals for 2022 include compliance automation or better identification of conflicts of interest? MCO can help you reach those goals easily and affordably with our fully integrated conduct risk platform that uses a global company and security master dataset to identify conflicts across employees, firm transactions and third parties.
Let us know and one of our experts will be in touch.