A survey released today by SEI, a provider of investment processing services, identifies areas of growing concern for chief compliance officers who are struggling to keep abreast of the changing regulatory landscape.
The survey reveals that 59 per cent of CCOs feel their ever-growing list of responsibilities is impeding their ability to serve as effective officers; and for 28 per cent a shortage of resources or funding represents a major challenge.
For 22 per cent of those polled a looming problem is keeping firms focused on compliance despite the recurring distractions of trying to survive and prosper in an unstable economy. And 13 per cent of respondents say that dealing with SEC-related inquiries remains a major issue.
Changes to social media policies are another problem facing compliance professionals. A quarter of firms polled are currently using social media tools, and 78 per cent of them have tasked CCOs with creating or amending policies relating to the use of the new media technologies.
Another new area of responsibility for many CCOs is enterprise risk management (ERM). Compliance officers at the annual conference were cautioned by SEI about the risk of taking on responsibility for ERM unless they have adequate staff and qualifications to do so.
On the upside, the report found that senior management has been providing pretty good support to compliance officers. Some 80 per cent of those surveyed say they have ‘very strong’ or ‘somewhat strong’ commitment from senior management.
The poll surveyed CCOs from organisations with between $500 million and $5 billion of assets under management and the report outlines the constant struggle facing CCOs as they try to keep abreast of the changing regulatory environment with dwindling or stagnant resources.
‘The poll shows that CCOs continue to be asked to do more with less, and there doesn’t appear to be much relief in sight,’ says Jim Volk, CCO for SEI’s Investment Manager Services division. ‘With ongoing SEC rulemaking activity, the regulatory environment is constantly changing, so most CCOs need help just to keep up.’
[Article by Aarti Maharaj, Corporate Secretary]