The Friday List: The 7 Most Important Attributes for a Chief Compliance Officer

 

Today, we offer our “Friday List,” an occasional feature summarizing a topic significant to investment management professionals interested in regulatory issues.  Our Friday Lists are an expanded “Our Take” on a particular subject, offering our unique (and sometimes controversial) perspective on an industry topic.  Today’s topic is often raised by both compliance officers and the bosses that love them.

 

The 7 Most Important Attributes for a Chief Compliance Officer

1. Regulatory Knowledge – A CCO must have an in-depth knowledge of the laws, regulations, interpretations, and regulatory positions as well as the firm’s compliance policies and procedures and their implementation.

2. Firm Knowledge – A CCO must become intimate with the firm’s organization, finances, clients, and culture.

3. Industry Experience – An effective CCO must advise his/her firm’s executives about how other industry players implement products, develop structures, work with the regulators, and utilize technologies.

4. Analytical Intelligence – Dynamic firms in dynamic markets require a CCO that can be flexible to adopt new approaches, yet professionally skeptical of unproven methods, products and structures.

5. Diplomatic – Knowledge and experience will only go so far if a CCO does not have the political skills to convince business executives.

6. Calm – A CCO must always display grace under pressure and show confidence regardless of the situation and implications.

7. Fearless – A CCO must exercise independence with senior executives and put personal issues aside while tackling difficult issues even in the face of possible personal liability.