When to Consider an External Compliance Consultant

Consider These 5 Reasons to Hire an Outside Compliance Consultant

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Compliance consultants have experience addressing unique or rare compliance issues. Comprehensive expert advice, when it comes to your firm’s compliance, serves as a valuable asset and strengthens safe business practices. This experience translates into time and money being saved on other resources and your CCO will be grateful for the firm showing its support for compliance by providing expert help.  Coast to Coast Compliance can empower your CCO and help provide the support and confidence needed to affect a strong compliance program. The reasons to outsource compliance and best timing can vary based on your firm’s needs, but listed below are 5 reasons we’ve identified for when you should consider an outsourced compliance consultant.

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1. Annually, SEC-registered investment advisers must navigate several ongoing regulatory and compliance requirements, ranking among most important is submitting an annual updating amendment to the Form ADV and conducting an annual review.  Failure to comply with either of these annual requirements can lead to fines, regulatory examinations, censures, enforcements, and other penalties.  

2. When considering registration as an investment adviser and in need of creating a compliance program, compliance consultants have extensive experience with the process and are equipped to develop tailored compliance programs for your firm’s particular needs.

3. After your firm receives a document request list from the SEC or another securities regulator, hiring a compliance consultant to field questions and prepare for an exam is a smart move which provides you with both peace of mind and expert guidance.

4. If your firm’s CCO has retired, resigned, or put in their 2 week-notice, and no other employees are willing to take their place, this integral position can be filled with confidence by hiring an outside compliance expert.  This will allow your firm the necessary time to properly vet, hire, and train a new CCO.

5. If institutional investors are interested in your firm and are now asking for an independent review of the compliance program before deciding on whether or not they will invest, hiring an outsourced compliance consultant will provide an independent perspective and valuable resource to comprehensively review your firm’s compliance program.

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For More Information:

Our goal is to provide value by freeing up internal resources and allowing our clients and their personnel to focus on other aspects of the business, while we focus on those compliance functions they would like to outsource.  Our blog post dives into further detail about how outsourcing compliance duties saves you time, money, and stress.

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How Coast to Coast Compliance Can Help.

If you have any questions about Coast to Coast Compliance or would like to know more about how we can help your firm, please reach out to us. We are passionate about serving as a resource for our clients and are happy to help in any way that we can.