03.25.26

More RIAs Are Outsourcing Compliance

by: Elijah Nicholson-Messmer

Outsourcing chief compliance officers (CCOs) is becoming more common among registered investment advisors, raising concerns about whether one individual can effectively oversee multiple firms. Nearly 8% of CCOs at firms registered with the U.S. Securities and Exchange Commission were compensated by a third party in 2024, according to an analysis by the Investment Adviser Association and COMPLY, marking the third year in a row that outsourced CCO use has grown. Across the industry, more than 2,500 CCOs are responsible for two or more RIAs at the same time, according to ISS Market Intelligence. Most outsourced CCOs handle compliance for just two or three firms, but more than 60 oversee five or more RIAs, and just over a dozen are responsible for 10 or more.

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