{"id":1443,"date":"2025-04-16T09:53:12","date_gmt":"2025-04-16T09:53:12","guid":{"rendered":"https:\/\/iqeq.com\/us\/insights\/the-rise-of-the-outsourced-cco-why-investment-advisers-are-making-the-switch\/"},"modified":"2025-04-17T09:30:56","modified_gmt":"2025-04-17T09:30:56","slug":"the-rise-of-the-outsourced-cco-why-investment-advisers-are-making-the-switch","status":"publish","type":"post","link":"https:\/\/iqeq.com\/us\/insights\/the-rise-of-the-outsourced-cco-why-investment-advisers-are-making-the-switch\/","title":{"rendered":"The rise of the outsourced CCO: Why investment advisers are making the switch\u00a0"},"content":{"rendered":"
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By Sean Wilke, Senior Managing Director, U.S.<\/span><\/i>\u00a0<\/span><\/p>\n

Not too long ago, both regulators and institutional investors raised eyebrows at the idea of an outsourced chief compliance officer (OCCO) for registered investment advisers (RIAs). But the past few years have seen a dramatic shift in sentiment. Outsourcing compliance functionality saw a significant jump in 2023, with 38% of organizations<\/a> opting to outsource rather than keep compliance in-house.\u00a0\u00a0<\/strong><\/p>\n

\u00a0<\/span>Today, OCCOs aren’t just accepted\u2014they’re often preferred. The causes for this marked change are varied, ranging from advancements in tech and remote work normalization to improved <\/span>outsourced solutions<\/span><\/a>. The modernization of the global workforce has transformed how the industry approaches compliance leadership.\u00a0<\/span>\u00a0<\/span><\/p>\n

In this post, we\u2019ll look back at <\/span>how the outsourced CCO has gained so much ground<\/span><\/a> and explore the benefits of outsourcing this critical function.<\/span>\u00a0<\/span><\/p>\n

What makes a qualified CCO?<\/span>\u00a0<\/span><\/h2>\n

The Investment Advisers Act <\/span>(SEC Rule 206(4)-7)<\/span><\/a> outlines three straightforward requirements for who can be designated as a CCO. They must have:<\/span>\u00a0<\/span><\/p>\n