Worried That Your Next SEC Audit Will End in Fines? TAKE THE ASSESSMENT

Can I Outsource Compliance Services?

Let’s chat about a question that we get a lot.

Like a lot, a lot.

That question is…

“Can I outsource my compliance services?” or “Can I outsource the function of a CCO?

The quick answer is… YES!

We’re going to elaborate more on this.

The Role of a Chief Compliance Officer (CCO):

When it comes to compliance, the Securities and Exchange Commission (SEC) sets clear expectations for a Chief Compliance Officer. A knowledgeable CCO is a must have!

The role of a CCO includes (and is not limited to):

  • Being well-versed in the rules and regulations, such as the Investment Advisors Act.
  • Drafting policies and procedures and having the backbone to put them in place and enforce them effectively.
  • Conducting regular risk assessments to identify and mitigate compliance risks within the organization.
  • Developing and implementing compliance training programs for employees.
  • Establishing and maintaining a strong compliance culture throughout the organization.
  • Collaborating with external auditors and regulatory bodies during audits and examinations.
  • Advising senior management and the board of directors on compliance-related matters.
  • Acting as a liaison between the organization and regulatory authorities.
  • Maintaining relationships with legal counsel and other compliance professionals to stay informed and seek guidance when needed.

As the owner, you must empower them to enforce the rules and regulations within your organization.

You need individuals with a track record of serving in compliance roles, relevant designations, FINRA licences, or extensive experience in the compliance field.

Furthermore, your CCO should be active in the compliance world. They should be at compliance conferences to connect with regulatory bodies like the SEC, FINRA, and your state’s securities commission.

Staying up-to-date and actually understanding regulatory expectations is vital to keep your firm out of trouble.

The Problem with Inadequate Compliance

The unfortunate reality is…

Often times, firms assign compliance responsibilities to individuals ill-equipped for the task.

Your administrative staff. Financial advisors.

Sometimes even the business owner. YOU end up shouldering all of the compliance responsibilities.

This isn’t your passion. You don’t have time for this.

Let’s face it — not everyone is eager to read a 90-page document from FINRA or a 400-page rule release on the new marketing rule.

Rules are changing ALL THE TIME.

Firms are often unaware or have outdated knowledge of the rules and regulations governing their industry.

This exposes your business to potential compliance issues and regulatory scrutiny. It’s like handing a complex puzzle to someone without the right pieces or the desire to solve it. It’s just not going to work…

Compliance is too important. Don’t let it be an afterthought.

Outsourcing the CCO Function

Whether you choose an in-house or outsourced CCO to handle your compliance services, the SEC’s expectations remain the same.

An outsourced CCO can offer significant advantages.

By outsourcing to a reputable provider, you gain access to a whole team of compliance professionals who love what they do.

Our compliance nerds are well-versed in the rules, regulations, and industry best practices.

We bring the experience, knowledge, and skill to your firm. Ensuring your compliance program is NEVER an afterthought.

Our outsourced compliance department will dedicate the necessary time and resources to draft policies, implement compliance procedures, and stay updated on regulatory changes.

You don’t have to worry about it. At all!

We focus on the compliance so you can do what you do best — growing your business.

Choosing the Right Outsourced Compliance Service

Not all providers are created equal.

You need a provider with a proven track record of success in compliance services.

Great outsourced compliance providers have the resources and expertise to tailor their services to your needs. Because every firm is different!

They should understand your business model and regulatory requirements to provide proactive guidance and mitigate compliance risks.

Don’t settle for anything less than a team that’s passionate about compliance and committed to keeping your firm on the right side of the regulatory fence.

The SEC expects your firm to know all the rules.

Whether you choose an in-house CCO or outsource your compliance services, ensure they meet these rigorous standards.

So, if you’re questioning if you can outsource your compliance services…

Yes, you absolutely can!

The compliance nerds at My RIA Lawyer are here to help take the compliance struggles off your plate.

Contact us today to start outsourcing your compliance.

Author Bio

Leila Shaver is the Founder of My RIA Lawyer, a law firm that provides compliance and legal consulting for financial institutions. With extensive experience as a securities attorney and compliance expert, she has served as Chief Compliance Officer and General Counsel to RIAs, BDs, and TAMPs with billions in assets under management.

Leila understands the challenges RIAs face and is committed to helping RIAs streamline their processes, mitigate risks, and ensure compliance with regulatory requirements. She received her Juris Doctor from Atlanta’s John Marshall Law School and is a West Georgia Young Lawyers’ Association member. Leila has received numerous accolades for her work, including the Carroll County Bar Association’s Outstanding Young Lawyer Award in 2017.

LinkedIn | State Bar Association | Avvo | Google