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Compliance Staff Concerned with Workload, Compensation

A recent mutual fund industry survey of 159 compliance professionals from 75 firms found that while workloads increased in 2012, firm resources committed to compliance did not. This follows a similar trend from the previous year's survey. The problems of increased workload were exacerbated by concerns over new and pending regulation, particularly CFTC regulation that may require firms to register as commodity pool operators. At the same time, firms have ignored or denied requests for increased compliance resources. This comes at a time where both OCIE and the Division of Enforcement have been more active than in the past.

Compliance professionals identified increased investment in technology as one possibility for addressing the increased workload. The survey results indicated that compliance staff sought technological systems that would weed out routine matters and allow the compliance team to focus on non-routine issues, rather than an increase in personnel.

While the workload of compliance professionals has increased, compensation has largely remained flat. The majority of professionals expected either no increase in their pay, or a slight decrease, with only a small number expecting a significant increase.

Sources: Danielle Sottosanti, Fund Firms Continue to Underequip Compliance, Ignites, March 4, 2013; Danielle Sottosanti, Compliance Pros Expect Flatlined Pay, Ignites, March 6, 2013; Danielle Sottosanti, Compliance Pros Call for Better Tech Support, Ignites, March 8, 2013.

Copyright © 2020 Godfrey & Kahn S.C.National Law Review, Volume III, Number 104


About this Author

Godfrey & Kahn has one of the Midwest's largest investment management practices, with a team of attorneys dedicated solely to investment management clients. Our team offers a wide range of experience and includes attorneys who have worked at the SEC, held senior executive positions at national and international mutual fund groups and served as in-house counsel to companies within the investment management industry. This broad experience gives us the insight and understanding necessary to advise clients in the United States and abroad on the complex issues faced by investment management...