As the Securities and Exchange Commission ramps up on its enforcement efforts, the agency is warning chief compliance officers in investment adviser firms to get smart about their obligations. "As a compliance officer you have to have that "hairy eyeball" attitude. You have to look at something and say: okay what’s the reasoning behind this? Its your job to do that," said Mark Dowdell, an assistant director of the SEC’s National Exam Program in its Philadelphia office. He was speaking at the SEC's compliance outreach conference earlier this month. The focus on the role of CCOs has never been stronger as the SEC ramps up on its enforcement. Under the SEC’s rule 206(4)-7, which is known as the compliance rule, investment advisers must adopt policies and procedures that are reasonably designed to prevent violations of the Investment Advisers Act. They must review their policies and procedures at least once a year, and hire a chief compliance officer to implement the firm’s policies
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