SIFMA White Paper: "The Evolving Role of Compliance" (with Barrentine Comment)

SIFMA has published a new white paper titled "The Evolving Role of Compliance." As the title suggests, the paper is a response to the profound changes experienced in the securities industry since SIFMA's 2005 white paper titled "The Role of Compliance." "The Evolving Role of Compliance" highlights these changes and their impact on the compliance function, provides advice with respect to many of the challenges raised thereby, and, most significantly, attempts to push back, if somewhat gently, against the expanding expectations of regulators toward the compliance function. "The Evolving Role of Compliance" provides a good overview of the current state of the compliance function within the securities industry, including areas of stress, the views of regulators as reflected in speeches, enforcement proceedings, and new regulatory schemes, while also providing recommendations and advice to regulators, senior management, and compliance officials for navigating these changed conditions.

Barrentine Comment: SIFMA's newest white paper chronicles the increased expectations of regulators toward compliance officials together with their increased risk of enforcement liability. Compliance officials must be aware of these increased expectations and risks and should manage the compliance function in a manner that not only takes these risks into account but also helps minimize their own personal exposure to regulatory charges.

Click here to view paper in full (links externally to SIFMA website).See also: Lofchie and Barrentine Commentary on Reg SCI and the Role of Compliance (March 7, 2013).See generally: Lofchie's Guide to Broker-Dealer Regulation:Supervision Chapter.