The passage of the Dodd-Frank Act in July 2010, along with regulators’ increased emphasis on risk management, is heightening the importance of having the right person in the chief compliance officer role.
 
Red flags should go up if the investment advisor and the fund board have anything but full confidence in the CCO’s ability to carry out compliance responsibilities in today’s more stringent regulatory landscape. All signs indicate that demand for skilled CCOs will only continue to increase.

After five full years of existence the responsibilities of the Fund CCO need reexamining. Of course, Rule 38a-1 of the Investment Company Act specifies that the CCO shall ensure that the Fund complies with all of the Securities Laws, but the practical problems associated with being accountable to the fund board, building an annual compliance plan, setting priorities, securing resources, and taking corrective action, have all changed since October 2004. This Bulletin will examine some of the professional and personal issues facing today’s CCO.

MPI recently completed its fourth annual Survey of Mutual Fund Chief Compliance Officer Compensation and Organizational Practices. This bulletin summarizes the findings and is based on the submissions of 56 fund CCOs, representing funds with $2.3 trillion in assets.  66% of the participants were full-time employees and serve as CCO to both the fund and the advisor.

     The role of a mutual fund’s Chief Compliance Officer was partially devised to assist the board in the execution of their duties. Principle among them is to ensure that the Fund complies with the Securities Laws. In many ways the CCO is the eyes and ears of the fund directors. And in return, the fund board has an obligation to guide, monitor and support their CCO.

MPI recently completed its fifth annual Survey of Mutual Fund Chief Compliance Officer Compensation and Organizational Practices. This bulletin summarizes the findings and is based on the submissions of 65 fund CCOs, representing funds with $2.9 trillion in assets.  66% of the participants were full-time employees and serve as CCO to both the fund and the advisor.

     MPI recently completed its sixth annual Survey of Mutual Fund Chief Compliance Officer Compensation and Organizational Practices. This bulletin summarizes the findings and is based on the submissions of 63 fund CCOs, representing funds with $3.4 trillion in assets.  65% of the participants were full-time employees and serve as CCO to both the fund and the advisor.