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This is an important read. Comments by Commissionaire Hester Peirce of the Securities and Exchange commission (SEC) on the charges bought by them against the Chief Compliance Officer (CCO and Principle) of Hamilton Investment Counsel Jeffrey Kirkpatrick. The settle administrative proceeding is worth reading.
The SEC response raises some questions that for me point towards future action by the SEC towards regulatory compliance, the role of compliance officers and those responsible for regulatory compliance in the C-Suite. In this case the SEC recognizes the important role of the CCO in the organisation in ensuring an organisation complies with Securities law.
Note the references to a CCO liability framework and how it might work in practice. ‘The Compliance Committee of the New York City Bar Association (NYC Barâ€) recently proposed one for consideration.’ Does charging the CCO support the SEC meet its commitments as a regulator, the SEC seems to think that it will. Reading the SEC Commissionaire response it appears to be aligned with the tests set by the NYC Bar compliance framework. Is this starting to frame the expectations of oversight and assurance required by the SEC as it relates to compliance?
The SEC is moving towards the regulation of cybersecurity that will affect the role of the CISO. Whose role is being elevated to the board room as the expert responsible for cybersecurity risk management. That many in the industry have been waiting for, but with this comes corporate and potentially legal responsibility.
The SECs move to charge the CCO (and a Principle of the organisation) focuses in on the role of corporate compliance. Could the SEC also be moving to develop a legal-compliance framework, to provide oversight of the CCO function. That will impact the role of the CISO, bringing a much needed focus on cyber, as it relates to cybersecurity risk management compliance.
Ted Dziekanowski
#chiefcomplianceofficer #compliance #securitiesandexchangecommission #regulation #cybersecurity
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