SEC Spotlights Outsourced CCOs in Data Hunt
By Peter Ortiz
June 16, 2015
Guy Talarico, CEO and Founder of Alaric Compliance Services, LLC was quoted in the June 16, 2015, Ignites Article, “SEC Spotlights Outsourced CCOs in Data Hunt,” by Peter Ortiz. The article discusses the SEC’s proposals to require funds to begin providing the identification and contact information including address and telephone numbers of each chief compliance officer of each fund.
The other proposal for a rule change would be to increase the disclosure requirements of advisers on their Form ADV. The SEC is interested in knowing who pays the CCO and if that person comes from a third-party service provider.
If these proposals pass the SEC would have the ability to create a searchable database of all CCOs. They will be able to identify those firms using third party CCOs which should not suggest that these relationships do not work, as many shops also outsource their fund administration, accounting and legal counsel. And there is a need and a demand for these services.
Excerpt from Article:
“Guy Talarico, CEO of Alaric Compliance, says a compelling reason to go with a third-party CCO is their independence. He also notes that many fund shops outsource a range of functions, such as administration and accounting. Outsource providers like Alaric also can fill voids and help funds address staff turnover. ACCO who gives two weeks’ notice, for example, doesn’t leave a firm much time to do a search, where an outsourced CCO can be put in place in days, he says.
““At the end of the day, each CCO is liable in the eyes of the SEC,” Talarico says. “We take the risks very seriously.””