Outsourced CCO is one of the most common requests we receive at InnReg. InnReg advisors have served and are serving as Chief Compliance Officers at a number of fintech startups and established financial institutions since 2013 and worked as CCOs before joining InnReg.
Many regulatory compliance consulting firms offer Outsourced CCO services to reduce costs without sacrificing quality. You can quickly assess and compare InnReg’s Outsourced CCO Services here:
|Outsourced CCO services scope||Complete suite of compliance and operations solutions across all fintech and financial services verticals||Opportunity to upsell more compliance services|
|Compliance processes owner||InnReg (included)||Your team is expected to do it|
|Compliance workflows owner||InnReg (included)||Your team is expected to do it|
|Assigned resources||CCO + a project team||Just the CCO (one person)|
|What is your startup team expected to do?||Collaborate with InnReg||Hire more compliance personnel to complete all compliance tasks|
|Ramp up||One week||Two months+|
|Additional compliance team expenses||None||Hire and manage your own team or purchase more services|
|CCO specialization in your vertical||Matching niche CCO experience||Generalist CCO experience|
Having a Chief Compliance Officer is a requirement by the SEC for all registered investment advisors. SEC’s Rule 206(4)-7 requires each adviser to designate a CCO to administer its compliance policies and procedures. The CCO should possess 3 key characteristics:
In parallel, FINRA mandates that broker-dealers must have a CCO as well. Regulatory Notice 22-10 focuses on the scope of liability for CCOs under its Supervision Rule 3110, noting the role is vital in preventing, detecting, and remediating potential violations of internal policies and procedures.
In addition to being a requirement, an InnReg Outsourced Chief Compliance Officer typically advises founders on early strategic business and operating model decisions at the executive level that support uninhibited growth down the line.
Hence, a CCO is positioned to deliver efficiencies and strategic value while being part of the company’s management team.
CCOs are fully responsible for the regulatory compliance of your company. They design and test compliance policies and procedures, incorporating pertinent existing and pending regulations, best practice recommendations, and other guidelines.
Our senior consultants have decades of relevant in-depth experience in various fintech and financial service niches. Therefore they can tailor your compliance program to meet your specific business model requirements.
You can read more about our collaboration with Finsie for which InnReg designed a custom business and compliance model. The partnership pioneered an innovative platform in just in time to take advantage of new regulations.
Our typical Outsourced CCO services include but are not limited to:
One of the key reasons firms choose to outsource their CCO is to reduce overhead expenses. According to data from Robert Half, the U.S. median cost of just a CCO in major metropolitan areas, including salary and benefits in 2023, is over $326,000. That figure increases in major financial and tech centers such as New York City and Silicon Valley. Clearly, this cost can be a significant burden for many early-stage companies.
The total savings when hiring an Outsourced CCO from InnReg can be between 30% to 50% and include a supporting team responsible for the entire compliance function.
If you are interested in discussing your needs and have questions about filling a CCO role, please get in touch for a no-obligation free consultation. We will carefully consider our mutual fit and your current regulatory compliance readiness and advise the best solution for your organization.