Staying Compliant Without Burning Bridges: A CCO’s Guide to Collaborative, Sustainable Compliance

The pressure to safeguard a firm’s compliance program can be immense, especially when there is volatility in the market or within your business and the responsibility usually falls squarely on the Chief Compliance Officer (CCO).

In order for compliance to be effective, it must be viewed as aligned in support of the business.

CCOs should engage with senior management to get their buy-in for new compliance initiatives, work with firm executives to resolve problems or address problematic behavior and apply a collaborative approach with advisors that ensures compliance is not perceived as a “roadblock,” but as a vital partner in achieving the advisor’s and firm’s strategic goals.

In today’s rapidly evolving regulatory landscape, the best compliance programs are those that are adaptable, efficient, and deeply embedded within the organization’s operations.

How to Create an Effective, Sustainable Compliance Culture

1. Establish compliance as part of the operational workflow, not an external hurdle.
   Compliance should be built into the business process. By integrating compliance into day-to-day operations, teams can identify and address potential issues early.
2. Focus on cultivating a compliance culture that aligns with the business.
   An effective compliance culture is one that empowers rather than restricts. By aligning compliance objectives with business priorities, compliance officers can demonstrate how ethical and compliant practices actually support long-term success.
3. Prioritize high-risk areas that put the firm at risk.

A risk-based strategy keeps compliance focused and effective. Not every issue requires the same level of scrutiny. By identifying and monitoring areas that truly pose significant risk, compliance officers can allocate energy and resources wisely.

4. Explore solutions to advance business interests.
   Compliance exists to help excel while fulfilling fiduciary obligations. By exploring workable alternatives instead of simply saying “no,” compliance officers demonstrate their commitment to the team’s goals and position themselves as collaborative problem-solvers, not obstacles.
5. Offer rationale for restrictions.
   Transparency builds understanding. When compliance officers provide explanations as to the “why” a protocol is necessary, they help others see the bigger picture, thus educating employees and encouraging proactive compliance. This helps to support the firm’s culture of compliance rather than position it as a source of frustration.
6. Retain outside Regulatory counsel to assist with complex issues.

Regulatory counsel can help even the most experienced compliance teams as they can assist in providing insight into evolving regulatory trends, and considerations as compliance faces complex issues to ensure internal practices are strong and aligned with the firm’s objectives.

By focusing on a risk-based approach, and integrating a balance of caution and relationship building, Compliance officers can protect and nurture a strong compliance culture.

Ultimately, the goal of an effective compliance program is to create an environment where compliance and the business go hand in hand. When compliance professionals engage proactively with their teams, encourage transparency, and support innovation within safe parameters, they foster a culture of trust and accountability.

Jacko Law Group provides guidance to help compliance officers and firms on how to grow and maintain a robust compliance program.

For more information, call us at  619.298.2880 or email [email protected].