Outsourced Compliance Considerations | Chuck Martin Insights
Vigilant Insights
Introduction
As Firms continue to commit more time and resources to compliance, many choose to partner with compliance consultants to either fill their Chief Compliance Officer (“CCO”) positions or provide support for them.
There are many factors that go into this decision, including Firm size, resources available, experience of the staff, and business growth expectations.
It is important that the CCO promotes a proactive culture of compliance regardless of whether they are in-house or third-party.
In a recent article by FinancialAdvisor IQ, Vigilant’s Chief Operating Officer, Chuck Martin, MBA, provided his insights toward Outsourced Compliance and highlighted some considerations to be aware of.
Chuck Martin Insights
This article discusses some of the benefits and risks of an Outsourced CCO.
While some argue that an in-house CCO creates better compliance outcomes, Chuck emphasizes that Firms can quickly access experienced and knowledgeable Compliance Officers through partnership with an Outsourced Compliance Team.
He discusses how some Firms have a dual-hatted CCO (i.e., CEO/CCO, CFO/CCO, COO/CCO), and the risks that situation could bring, especially if a less-experienced professional is wearing the CCO hat and does not have a support team of industry experts to reach out to for regulatory guidance.
Vigilant’s Conclusion
Every Firm must carefully consider what level of Compliance Support their program needs; many choose to partner with compliance experts in some capacity.
While the level of partnership varies by the needs of the Firm, the most important decision is choosing the correct Compliance Firm to partner with.
Vigilant is an Award Winning and Industry Leading Compliance Firm that provides an emphasized focus on providing best-in-class, end-to-end Compliance Solutions that are customized and tailored to your Firm’s compliance program and specific needs.
Reach out to us today with questions you may have about providing your compliance program with the resources it needs to be successful.