Rachael Schwartz was quoted on why investment company chief compliance officers (CCO) should alert their fund board if they are being shut out of important discussions regarding the firm’s business.
One specific area in which the CCO’s role is often overlooked is in the selection of subadvisors. Rachael stresses the importance of CCOs speaking up, since the compliance department must ensure that a subadvisor’s requisite systems comply with the fund sponsor’s programs and SEC rules.
“It’s important that the CCO sees what’s going on at a high level so they can make sure that compliance concerns are being thought about from the beginning of any new initiative being undertaken,” she says.
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