What is a Chief Compliance Officer (“CCO”)?
Rule 206(4)-7 of the Investment Advisers Act of 1940 (the “Advisers Act”) requires, among other things, each investment adviser that is registered with the U.S. Securities and Exchange Commission (“SEC”) to designate a CCO to administer its compliance policies and procedures.
Pursuant to Rule 38(a)-1 of the Investment Company Act of 1940 (the “’40 Act”), the Board of Trustees of a registered fund company must also designate a Trust-level, or Fund CCO, to administer the Trust’s or Fund’s compliance program and oversee the Fund service providers, including the investment advisers, underwriters, administrators and transfer agents. Acting as the point person for compliance oversight and 40 Act regulatory requirements, the CCO reports directly to the Board to ensure that a compliance program is in place to protect investors, and the policies and procedures are current and aligned with applicable rules and regulations. The CCO also works to ensure that the compliance program is more than simply a compliance manual – that the policies and procedures are tailored to Fund-specific business activities and risks, and that the Fund practices necessarily follow the established policies and guidelines.
How can Nottingham help with your compliance needs?
Nottingham offers compliance services tailored to your needs. These offerings include oversight of the following:
- Form ADV, Parts 1, 2A, 2B and 3 (Form CRS)
- Written policies and procedures and Code of Ethics
- Compliance calendar and risk assessment
- Related entities and/or affiliations
- Cybersecurity program and practices
- Controls and testing program and apparatus, including portfolio compliance
- Conflicts of interest
- Electronic communications review
- Advertising and marketing practices and materials and related disclosures
- Business continuity and disaster recovery plans and testing
- Vendor management and service provider relationships
- Any obligations under the 40 Act or specific jurisdictional requirements
- Other relevant compliance matters, policies and/or practices, as appropriate, including assistance with regulatory examinations or investigations
If you are thinking about creating a new investment advisory firm, Nottingham can guide you through the process, assist you with the formation and registration of the investment advisory firm and the creation and implementation of the firm’s compliance program, and provide ongoing oversight of the compliance program.
If you are looking for a more cost-effective solution for your existing compliance program, Nottingham offers a range of solutions. Nottingham can consult with you and your in-house compliance team to provide an analysis of and enhancements to your existing compliance program. Nottingham can provide an outsourced CCO who will assume ongoing oversight of your existing compliance program. Nottingham also has the technical expertise to offer certain testing and monitoring solutions, such as portfolio compliance and liquidity risk management tracking.
Under each option, Nottingham personnel can lead and direct the investment adviser in the administration, oversight, monitoring and testing of the compliance program, and work in conjunction with appropriate internal personnel and senior management at the firm to adequately and effectively discharge its responsibilities under the Advisers Act, 40 Act and other applicable federal and state securities laws and regulations.
Nottingham’s team has extensive experience across the industry including prior experience working at investment firms, securities regulators, law firms and compliance consultants. This experience, coupled with the firm’s decades of experience in fund accounting, administration and transfer agent services, enables Nottingham to provide a high quality and cost-effective solution to address your compliance needs.
What are the benefits of an outsourced CCO or consulting relationship with Nottingham?
- Experience and expertise
- Cost effective
- Independent and transparent assessment of existing compliance practices and policies
- Continuous compliance program maintenance and oversight
- Improved efficiency and use of internal resources
- Avoid the dangers of not knowing what you don’t know
How do I get started?
A prospective Nottingham compliance relationship begins with a consultation regarding the firm’s current compliance program or the task of building a new program. Through this consultation, we can help you determine if outsourcing compliance services makes sense for your advisory firm and if so, what services would most effectively and economically benefit your business and address your needs.