Understanding and defining CCO liability CCO liability refers to the legal and financial consequences CCOs may face if their firm fails to comply with applicable laws, regulations, or industry standards. [8] Opining on the matter, Commissioner Hester M. Pierce stated “the SEC’s determinations about whether to charge a compliance officer are consequential not only for the particular compliance officer, but more generally for the profession. Mitigating the risks of CCO liability hinges on understanding the types of cases out there that triggered regulatory enforcement actions. 1 Tom Corrigan, “Compliance Officer Survey,” Wall Street Journal Risk & Compliance Forum 2022, November 16, 2022, https://www.wsj.com/video/events/compliance-officer-survey/FA57F12C-2DFE-4E81-9369-43361D3D6BA6.html. 10 New York City Bar Association Compliance Committee, Framework for Chief Compliance Officer Liability in the Financial Sector, June 2022, https://s3.amazonaws.com/documents.nycbar.org/files/NYC_Bar_CCO_Framework.pdf.

Source: Wall Street Journal June 12, 2023 22:19 UTC