OCIE Chief Urges Firms to Value, Empower CCO

A recent speech by Pete Driscoll, head of the SEC’s Office of Compliance Inspections and Examinations highlighted the office’s achievements during the global pandemic and importance of the CCO role, noting that the challenges facing CCOs are even greater during these times.  “CCOs are currently having to do all of their roles virtually, while dealing with all of the new issues raised by Covid-19,” Driscoll said. He encouraged firms to support their CCOs, explaining that an effective CCO should have confidence that they can stand up for compliance and be supported.  “If we see that an adviser has changed CCOs recently or frequently, we are very likely to ask about the circumstances of those actions on an exam,” Driscoll said. He urged firms to consider how well they are empowering CCOs and giving them authority and autonomy in the organization. Driscoll said OCIE notices when a CCO is replaced because they challenge questionable activities or behavior or when a CCO is “trotted out for an examination or sits silently in the corner in compliance discussions, overshadowed by firm senior officers.”  Driscoll also noted that OCIE has observed good practices where CCOs are routinely included in business planning and strategy discussions and brought into decision-making for their meaningful input.