Y U So Mad?

Closer SEC Inspection for CCOs including Helane Morrison

Feb
01

CCO groups stated that members were feeling vulnerable, and they’re expecting more inspections in 2016. SEC officials have not said anything about how they view CCO at money management firms yet. However, more scrutiny means that there might be some changes in the role of compliance officers. Today, we will be looking more closely at CCO groups and in particular, Helane Morrison.

Past Cases

Back in April, the SEC officials charged BLK Advisers LLC compliance officer who did not have policies for the outside activities of employees. This same advisor also failed to disclose the business interest of a top-performing portfolio manager. In June, SEC charged SFX Financial Advisory Management Enterprises and its CCO because they failed to implement some policies, filling a misstatement in a form as well as failing to do an annual review. Both cases were settled out of court for cash settlements.

Policies and Enforcement

There are more than 8,000 enforcement actions done since 2003, and only five were against individuals who have the title of CCO. The SEC enforcement director stated that they always try to be fair and every case; they only charged CCOs who have crossed a clear line. CCOs are going to be watched all time. This is why it is important to choose the best person available to the chief compliance officers; it is a very important job.

Hall Capital’s CCO

Helane Morrison is the CCO, General Counsel and Managing Director of Hall Capital Partners LLC. She is one of the best CCOs out there because before, she was the head of SEC’s San Francisco Office from 1999 until 2007. In 1996 until 1999, Morrison was the head of enforcement for the San Francisco SEC Office. Before 1996, she was a lawyer who sometimes represented clients who are sued by the SEC itself.

Morrison is also a speaker on topics like legal issues and compliances that affects investment advisers. She graduated from the University of California that is located in Berkeley. Morrison’s past experiences guarantees that she will do a excellent job as a CCO with a bright future ahead of her. You can keep up with Helane on her LinkedIn and Crunchbase profiles.

Conclusion

Some people are worried that the scrutiny of CCOs can backfire to the agency. The amount of compliance professionals might decrease, and problems could go unchecked. SEC proposed a program that requires a third-party review for money managers. The scrutiny of CCOs is the reason why only the best like Helane Morrison should be chosen as CCO to prevent troubles.