Increased Compliance Investments Indicated by Survey
News and Alerts
Introduction
Ignites conducted a survey that provides some insight into the actions taken by firms amid our aggressive regulatory climate.
We discussed last year how firms were investing more in their compliance programs to avoid regulatory headaches. This trend appears to be continuing as we head into 2024. Considering the nearly $5 billion in SEC penalties handed out in Fiscal Year 2023, this supports the expected continuation of the current regulatory environment we are in.
Survey Results
The research survey performed was directed at Fund Chief Compliance Officers (“CCOs”). Based off the 48 respondents:
- 44% of their compliance teams had slightly increased in the past three years.
- 8% reported a significant increase in their team size recently.
- 90% of Fund CCOs said their roles had to evolve when adapting to the new regulations from the SEC.
- 69% of CCOs have increased their focus on anticipation and risk management than three years ago.
- 42% of the CCOs who have increased their staff size only have three or fewer members.
- The expertise of CCOs has expanded past simply compliance to involve operational knowledge and data analytics proficiency.
- Only 36% of surveyed CCOs for asset managers have worked there for more than 15 years.
Vigilant’s Conclusion
At a time when the SEC shows no signs of slowing down, these results are not surprising. It is worth noting that although industry leaders have reported the increased burden being placed on CCOs, just under half of respondents had less than four compliance employees.
We have discussed how “do it yourself” compliance can open your firm to unnecessary regulatory risks.
In-house CCOs with limited resources have important considerations to make. Partnering with dedicated compliance professionals can provide your firm with the support it needs.
Our end-to-end compliance solutions are cost-effective and tailored to your firm’s operations.
The SEC has made their list of priorities clear for 2024, so now is the time to properly assess your firm’s compliance program.