With a year's worth of experience under their belts, some fund companies are blasting the idea of outsourcing their Chief Compliance Officer function to a third party. The Securities and Exchange Commission now requires fund companies to have a CCO and a formal compliance program.
One CCO at a large fund firm said he thought it would be impossible for a third-party CCO to be engaged with the organization enough to satisfy the SEC's requirements. William Bridy, president of financial data services at Merrill Lynch, said, "I don't know how" a fund company could do it. Virginia Meany, president and ceo of JPMorgan Investor Services, said the service provider deliberately stayed out of the CCO outsourcing market because it did not know how it could set up a viable business model.