Investment adviser: Failure of duty to supervise
Under the new Compliance Program Rules, each U.S. registered investment adviser and U.S. registered investment company was required to designate a Chief Compliance Officer (â–œCCO)â–? by October 5, 2004. The CCO title is expected to carry supervisory responsibility
for many of the newly appointed officers, which may lead to personal liability if they are charged with a failure of the duty to supervise. As a result, there is renewed interest in the standard of care applicable to supervisory personnel of investment advisers and the manner in which they
may be insulated from regulatory liability for claims of failure to supervise persons under their control who violate certain federal securities laws (â–œFederal Securities Laws)â–?.
Keywords: Financial institutions; Investment funds; Investments; Investors
Document Type: Research Article
Publication date: 01 January 2004
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