Advisers Still Feel Unease Over CCO Liability Risk

June 30, 2015 – In The News
Compliance Week
Joshua Horn was featured in the Compliance Week article, “Advisers Still Feel Unease Over CCO Liability Risk.” Full text can be found in the June 30, 2015, issue, but a synopsis is below.
Personal liability for chief compliance officers (CCO) has become a large concern due to recent instances where they are being held accountable for the conduct of advisers. Individuals in the investor adviser community worry that it may set a dangerous precedent.
“Who is going to want to be in that position?” said Joshua Horn, a partner and co-chair of the securities industry practice at Fox Rothschild LLP.
The investment advisor world has not been the only area to see the personal liability of compliance officers at risk.
The SEC’s enforcement actions against Battista and Mason are analogous, Horn says, to what we’re seeing in the broker-dealer context, where the SEC has started to pursue compliance and legal professionals for the actions of others.
“It seems a bit draconian to nail a chief compliance officer who is not involved in whatever the securities violation is,” Horn says.