Compliance Officer

DEFINITION of 'Compliance Officer'

An employee whose responsibilities include ensuring that the company complies with its outside regulatory requirements and internal policies. A compliance officer may review and set standards for outside communications by requiring disclaimers in emails, or may examine facilities to ensure that they are accessible and safe. Compliance officers may also design or update internal policies to mitigate the risk of the company breaking laws and regulations, as well as lead internal audits of procedures.

BREAKING DOWN 'Compliance Officer'

Compliance officers are expected to provide an objective view of company policies. Influence by other employees, including management and executives, to overlook infractions may result in significant fines or even business closure. Larger companies typically have a Chief Compliance Officer (CCO) to direct compliance-related activities.

RELATED TERMS
  1. Governance, Risk Management and ...

    An integrated approach used by corporations to act in accordance ...
  2. Compliance Examination

    A periodic examination of banks to make sure banks are operating ...
  3. Internal Audit

    The examination, monitoring and analysis of activities related ...
  4. Compliance Department

    The department or unit within a brokerage firm, bank or financial ...
  5. Internal Controls

    Methods put in place by a company to ensure the integrity of ...
  6. Sarbanes-Oxley Act Of 2002 - SOX

    An act passed by U.S. Congress in 2002 to protect investors from ...
Related Articles
  1. Professionals

    Common Interview Questions for Compliance Officers

    Prepare to ace your compliance officer interview. Learn how to answer some commonly asked interview questions and what you need to know to come out ahead.
  2. Fundamental Analysis

    How The Sarbanes-Oxley Era Affected IPOs

    After the infamous collapse of companies like Tyco, Enron and WorldCom, the government responded to try and prevent it from happening again.
  3. Professionals

    Get A Job In Compliance

    If you're a stickler for rules, this could be a promising career path for you.
  4. Professionals

    On The Record: Communications With The Public

    NASD Rule 2211 can make or break your career as a registered principal.
  5. Professionals

    A Look At Entry-Level Careers In Finance

    Learn more about the career options that are available to you after you've obtained your finance degree.
  6. Economics

    The Pitfalls Of Financial Regulation

    Regulatory actions usually have lofty intentions that end up with unintended and negative consequences.
  7. Options & Futures

    Financial Regulators: Who They Are And What They Do

    Find out how these government agencies govern the financial markets.
  8. Investing Basics

    Inside IPO Roadshows

    Understand more about IPO road shows. Learn the reasons why an IPO road show is important for the success of a company's public offering.
  9. Your Practice

    How Do Edward Jones and Merrill Lynch Compare?

    Merrill Lynch and Edward Jones have both been around for decades, but they approach business very differently. Here's the lowdown on how they compare.
  10. Mutual Funds & ETFs

    How to Beat Back ETF Fees

    Fees are an inescapable aspect of investing, but here are some small things you can do to lessen their impact on your ETF returns.
RELATED FAQS
  1. What's the average salary of a compliance officer?

    The average salary for a compliance officer is $66,770 per year, according to the U.S. Bureau of Labor Statistics. This salary ... Read Full Answer >>
  2. How long does a stock account have to be dormant before it can be escheated?

    A stock account is typically considered dormant and eligible for escheatment after five years of inactivity; however, this ... Read Full Answer >>
  3. What is the interest rate offered on a typical margin account?

    Interest rates on margin accounts vary according to the size of the loan and the brokerage firm being used. Generally, interest ... Read Full Answer >>
  4. What is the cost of a share purchase?

    When investors purchase shares of stock, the price paid includes two components: the price of the stock and the fee charged ... Read Full Answer >>
  5. What is the difference between fee-based advisors and commission-based advisors?

    The difference between a fee-based adviser and a commission-based adviser is that the former collects a flat fee for investment ... Read Full Answer >>
  6. What is the difference between a custodian bank and a mutual fund custodian?

    Custodian banks and mutual fund custodians, commonly known as mutual fund corporations, perform very similar roles for different ... Read Full Answer >>
Hot Definitions
  1. Harry Potter Stock Index

    A collection of stocks from companies related to the "Harry Potter" series franchise. Created by StockPickr, this index seeks ...
  2. Liquidation Margin

    Liquidation margin refers to the value of all of the equity positions in a margin account. If an investor or trader holds ...
  3. Black Swan

    An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult ...
  4. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  5. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
Trading Center