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Running a registered investment advisor (RIA) firm comes with a multitude of responsibilities, including keeping up with compliance and various regulations, as well as maintaining robust internal controls. Managing compliance in the ever-evolving landscape of the financial industry is a complex task, and one crucial role within an RIA firm is that of Chief Compliance Officer (CCO). Yet hiring and retaining a competent CCO can be a significant challenge and financial burden for small and medium-sized RIA firms.
AdvisorLaw’s Outsourced CCO service offers a comprehensive solution for your compliance needs. With AdvisorLaw’s Outsourced CCO service, you can streamline your compliance efforts and focus on what you do best — managing money and growing your business. By partnering with AdvisorLaw, you will gain access to experienced compliance professionals and a comprehensive compliance platform, all while benefitting from cost savings, as compared to hiring a full-time, in-house CCO.
The Costly Investment Of An In-House CCO
AdvisorLaw understands the financial constraints faced by RIA firms, particularly those that are smaller in size. Finding the right CCO for your firm is a challenge in itself, and turnover can disrupt your compliance efforts. In addition, the costs and time associated with recruitment, onboarding, and training can be a drain on your resources.
Once hired, the average salary for a CCO at a small RIA firm is around $120,000 or more, annually. When you add up expenses, such as health insurance, state taxes, federal taxes, social security taxes, Medicare, unemployment taxes, workman’s compensation, workstations, and cybersecurity, the overall cost of a CCO for a small firm can easily exceed $150,000 per year. Larger firms spend even more on this crucial role.
Cost Savings With AdvisorLaw’s Outsourced CCO
Outsourcing your CCO function to AdvisorLaw can lead to significant cost savings, as compared to hiring a full-time, in-house CCO. Our Outsourced CCO service offers a flat monthly fee, allowing you to obtain expert compliance oversight while controlling costs. Our flat monthly fee structure allows you to budget more effectively and avoid the unexpected expenses associated with an in-house hire. You’ll gain access to a team of compliance experts while eliminating several costs, such as salaries, benefits, training, and infrastructure. Moreover, by outsourcing your CCO needs, you can maximize your savings by taking advantage of tax deductions for professional services — another financial incentive.
Entrusting your needs to AdvisorLaw’s Outsourced CCO service gains you the advantage of working with experienced compliance professionals who have a deep understanding of the regulatory landscape. We stay up to date with the latest industry changes so that your firm remains compliant with all relevant regulations. With our expertise, you can navigate complex compliance issues and proactively address potential risks — before they become problems.
When you partner with AdvisorLaw, you gain access to our Nexus Compliance Platform, which provides constant monitoring of trades and holdings, as well as a range of services, including annual reporting, trade reviews, registrations and licensing, audit-ready archiving, and more.
With AdvisorLaw’s Outsourced CCO service, your outsourced CCO becomes an integral part of your team. That individual will be listed on your ADV (Form ADV – Uniform Application for Investment Adviser Registration), securing seamless integration and collaboration. This approach ensures that your compliance efforts are aligned with your business objectives, providing peace of mind and a solid foundation for growth.
Your outsourced CCO will organically integrate with your existing operations. We will work closely with you to understand your unique business model, goals, and risk appetite and provide tailored compliance solutions. Our support extends beyond routine compliance tasks, to offering guidance and recommendations on best practices, regulatory changes, and industry trends. You can rely on our expertise to navigate challenging compliance situations and make informed decisions.
Scalability & Flexibility
As your RIA firm grows, so do your compliance needs. AdvisorLaw’s Outsourced CCO service offers scalability and flexibility to accommodate your changing requirements. Whether you’re launching new investment products, expanding into new markets, or facing increased regulatory scrutiny, our team can adjust and provide the necessary support. You can focus on expanding your business with the confidence of knowing that your compliance function is adaptable and capable of supporting your growth trajectory.
Contact AdvisorLaw Today
Navigating compliance requirements can be a time-consuming and resource-intensive task for any RIA firm. But with AdvisorLaw’s Outsourced CCO service, you can eliminate challenges while also enjoying the expertise and oversight of a dedicated compliance professional — without the associated costs and administrative burdens. AdvisorLaw’s Outsourced CCO service offers a strategic solution that relieves the compliance burden while also enhancing your firm’s overall efficiency and effectiveness.
Don’t let compliance challenges hinder your growth and profitability. Contact AdvisorLaw today to discuss your specific needs and receive a customized quote. Discover how our outsourced CCO service can provide you with expert oversight, seamless integration, and potential cost savings, allowing you to focus on achieving your business objectives.
Let AdvisorLaw be your trusted partner in maximizing your RIA’s savings and success.