Selecting the right individual to lead and administer your regulatory compliance program can be the difference between a successful program, which adds value and trust with your customers, and one which puts your firm at risk of regulatory failure and fines. In addition, SEC Rule 206(4)-7 under the Investment Advisers Act of 1940, more commonly referred to as the “Compliance Rule,” requires an RIA firm to designate an individual with working knowledge of compliance regulations as the firm’s CCO.
Here are some common dos and don’ts to help you select the right CCO for your RIA firm.