Overseeing service providers and making sure that trading procedures meet all regulations are fund companies two biggest compliance concerns, a PricewaterhouseCoopers survey of 200 fund executives finds. Thirty percent cited overseeing service providers as their biggest concern, while nearly as many, 28%, cited making sure that trading and brokerage practices are compliant.
The survey also asked fund executives whether they have appointed a chief compliance officer. Seventy percent have named a CCO, although only 38% of those selections have been approved by the board. Evidently, many fund complexes are looking for CCOs from within, or close to, their companies, as 46% said knowledge of the fund family, its advisor and service partners was the most important factor in their selection. Who will fit the compensation bill for the new CCO varies widely, with 31% saying the funds will solely bear this cost, 29% saying it will be the advisor and 37% saying it will be a combination of the two.
The main reason PwC conducted the survey, said Tony Evangelista, a partner with PwC and head of its regulatory compliance practice, was to help fund companies and their service providers determine the biggest concerns in light of the new compliance requirements.