Statement of CFTC Chairman J. Christopher Giancarlo Regarding the Final Rule on Chief Compliance Officer Duties and Annual Report Requirements for Futures Commission Merchants, Swap Dealers, and Major Swap Participants
August 21, 2018
As part of the CFTC’s Project Kiss efforts, this final rule will streamline and clarify a Chief Compliance Officer’s (CCO) obligations, as well as harmonize certain provisions with the Securities and Exchange Commission’s (SEC) rules. Clarifying the role and responsibilities of the CCO should enable greater accountability and improve overall compliance, as well as reduce burdens on CCOs and uncertainty for registrants. The rule continues to impose a duty on CCOs to resolve matters but within the practical limits of their position at the CFTC-registered entity. The rule also continues to impose a duty for the CCO to undertake an annual review but reduces the burdens associated with the review, which will allow the CCO to devote more time and resources to compliance activities at the registrant. In addition, further harmonizing definitions and CCO duties of dual CFTC-SEC registrants should improve efficiency and further reduce the burdens on CCOs.
I would like to thank CFTC staff for their efforts. I would also like to thank Commissioners Quintenz and Behnam for their support.