ACA-IAA Investment Management Compliance Testing Survey Covers Fees and Expenses, Investment Mandates, Big Data and Custody (Part One of Two)

The role of the chief compliance officer is becoming more challenging and complex, according to panelists Enrique Carlos Alvarez, senior principal consultant at ACA Compliance Group (ACA); Sarah A. Buescher, associate general counsel at the Investment Adviser Association (IAA); and Sanjay Lamba, assistant general counsel at the IAA in a recent webinar presenting the results of the joint ACA-IAA 2018 Investment Management Compliance Testing Survey. Among the survey’s other notable findings are that more than three-quarters of respondents have not decreased their compliance testing and that nearly three-quarters of respondents employ some form of technology in compliance. This article, the first in a two-part series, examines the portions of the survey that covered compliance program testing; fees and expenses; socially responsible investing; sub-advisers; alternative data; trade surveillance; and custody. The second article will analyze the survey’s findings on best execution; soft dollars; advertising and social media; individual clients; cryptocurrency; cybersecurity; and other compliance trends. For coverage of ACA’s 2018 compliance survey, see “Compliance Programs and SEC Examination Priorities” (May 31, 2018); and “Electronic Communications, Personal Trading and Corruption Risk” (Jun. 14, 2018).

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