Compliance officers are critical to your broker-dealer business, from understanding regulations to maintaining the ethical treatment of your customers.
In new or expanding broker-dealerships, it is not uncommon for a CEO to wear the compliance hat at the same time. But limited time and knowledge can lead to lost opportunities or regulatory fines. FINRA imposed fines totaling $57 million in 2020 alone.
Read on to learn how an outsourced chief compliance officer can save your company money.
What Is a Chief Compliance Officer Responsible For?
The Chief Compliance Officer (CCO) is responsible for the regulatory compliance within an organization. The CCO job description covers the authority to establish standards, implement procedures, and contribute to the firm’s culture of compliance.
To perform their CCO duties, they need:
- Knowledge to do their job
- Responsibility to perform their work
- Appropriate authority
This role typically reports to the Chief Executive Officer or Chief Legal Officer.
Benefits of Outsourced Chief Compliance Officer Services
When hiring or outsourcing your company’s CCO, there is a lot to consider. For example, the CCO’s knowledge and experience and how they interact with regulators.
Here are five reasons an outsourced Chief Compliance Officer provides the benefits your company needs.
Experience and Knowledge
Your compliance partner will have a wide pool of experience and knowledge to call on from within their team. This ensures they have the right qualifications for the size of your company, and the resources to handle a complex business.
You save costs by not employing multiple people to cover the same job, or hiring an expensive and over-qualified employee.
Focused Outlook
An outsourced CCO’s only focus is on the compliance of your business. They’re not multi-tasking responsibilities and getting slowed down with other tasks. This allows them to make informed decisions more quickly.
The result is a reduction in money lost through slow decisions or audit failures.
Flexible Services
If you are looking to outsource the CCO role permanently, or short-term while hiring a new CCO, outsourcing offers the flexibility you need. Other options offer assistance to your CCO, allowing them to reach out with questions or when seeking advice.
By only paying for what you need, you will keep your compliance operations within budget.
No Employee Costs
Small to mid-size firms might not have the budget for a qualified, full-time CCO. Nor the time to advertise, interview, negotiate, and onboard a new position.
Using outsourced CCO services to pay an outsourced officer salary can be more cost-effective than an ongoing salary.
Keep Control of the Process
If I outsource, do I lose control? No. They work alongside your senior management, building relationships and maintaining close communications.
Your firm is still responsible for maintaining compliance. Your firm cannot redirect liability or responsibility. Therefore, it is important to find the right partner when preparing to outsource.
Find the Right Outsourcing Partner
Ready to take advantage of these benefits for your business? The right outsourced chief compliance officer will help you focus on your growth while they handle the compliance.
Request a quote and find out why [client name removed] is the right partner to work with.