Enforcement actions related to a compliance breakdown have become commonplace. There’s precedent now that a firm’s senior executives, including the chief compliance officer, will be held personally accountable for inadequate compliance oversight.

In late April, the SEC fined the two principals of an RIA $200,000 for failure to supervise the firm’s CCO, who breached the custody rule and sent false statements to clients. Authorities said the respondents also failed to provide funding, training or resources to support the executive in carrying out his duties.

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