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).