As with all career choices, there are some vital pieces of information that are not included in the textbooks. Being a Chief Compliance Officer (“CCO”) is no exception to this rule. There are simply aspects of the position where life experience becomes the CCO’s guidebook.

A thorough Chief Compliance Officer within a broker dealer (“BD”) is not every employee’s favorite person. Holding all employees to the strict processes and procedures set forth for the broker dealer can sometimes feel like a full-time job in itself. Being a CCO can be a thankless position, but the rewards can also be great.

Your broker dealer receives excellent marks during a regulatory exam, and the broker dealer can thank the Chief Compliance Officer for holding the firm and its employees to the highest of standards. A few of these standards may include:

  • Review of compliance topics at regular staff and management meetings to make sure everyone is aware of upcoming deadlines, changes, etc.
  • Encouraging senior management to be in attendance at all compliance meetings to show that the broker dealer as a whole is committed to its compliance program.
  • Schedule training within the broker dealer to keep employees informed of the various regulatory requirements as they apply specifically to its broker dealer.
  • Maintaining regular risk assessments to ensure the broker dealer is in compliance where necessary.

Additionally, great Chief Compliance Officers take the time to establish a relationship with their broker dealer’s Financial Industry Regulatory Authority (“FINRA”) Risk Analyst. Developing a level of trust between the broker dealer and FINRA is vital to the firm. FINRA holds a wealth of knowledge and wants to help the broker dealer succeed. Also, getting to know the managers and traders that the firm works with can be especially helpful when an audit happens so that the Chief Compliance Officer has a contact who knows the broker dealer and how it operates.

Lastly, the CCO may even go so far as to incorporate a tracking system to ensure processes and procedures are being completed in a timely manner. Having a tracking system in place to handle various tasks allows the Chief Compliance Officer to focus on other areas of the position.

For information on how Securities Compliance Management can help your broker dealer and its Chief Compliance Officer with various processes and procedures, tracking systems, and more, please contact us here.  Cheers to the Chief Compliance Officers out there in the broker dealer world! No broker dealer will ever succeed without a committed CCO on the team!