Gensler Delivers Remarks on Compliance

In November, SEC Chair Gary Gensler delivered a speech to attendees at the Compliance Outreach Program of the Commission’s Investment Adviser/Investment Company National Seminar that touched on the role Chief Compliance Officers (CCOs) play in safeguarding shareholder interests. In his remarks, Gensler noted CCOs “have to maintain a meaningful, ongoing conversation with your colleagues on the revenue side—while maintaining the critical independence and segregation of duties from the revenue function of your firms.” Gensler’s speech touched briefly on the recent implementation of the derivatives and valuation final rules, when he emphasized “how important segregation of duties are, particularly as relates to derivatives and valuations.” His comments also briefly touched on Reg BI for broker-dealers, the fiduciary standard for investment advisers, ESG, and the 2020 modernized marketing rule for advisers. Gensler concluded by stating “compliance professionals are ‘good’ when they understand not only the laws and the rules, but also understand and manage these conflicts inherent in human nature—conflicts documented as far back as the Hammurabi Code.”

Click here to read Chair Gensler’s remarks at the Compliance Outreach Program.