A '40 Act fund compliance program, formalized under Rule 38a-1, is a registered investment company's written set of policies and procedures designed to prevent violations of the federal securities laws. The Chief Compliance Officer, appointed by and reporting to the fund's board, is responsible for administering the program, certifying its effectiveness annually, and assembling the evidence that sits behind that certification — across 17j-1 personal securities, 22c-1 forward pricing, 17a-8 affiliated transactions, 12d1-4 fund of funds, 22e-4 liquidity, and the full operating surface of the fund complex.
The Fund Compliance Data Problem
The '40 Act compliance program doesn't live in one system. It lives across every system the fund complex touches. Rule 38a-1 obligates the CCO to oversee policies and procedures covering portfolio compliance, personal securities, NAV pricing and error correction, best execution, affiliated transactions, liquidity classification, service provider oversight, and more. Each of those areas has its own feed, its own application, its own cadence, and its own exception log.
The CCO pulls attestation data from HR, personal securities transactions from brokerage feeds, NAV pricing logs and fair value determinations from the fund administrator, trade exception reports from the sub-advisor, liquidity classification from the risk system, and the board book from legal — every quarter, manually. Evidence that regulators and the board expect to be continuous arrives in PDFs and spreadsheets stitched together the week before the meeting.
Board reporting expectations keep rising. Independent trustees ask harder, more specific questions: which fair value determinations moved the NAV last quarter, which access persons had pre-clearance exceptions, which sub-advisor had trade errors above materiality, how liquidity classifications shifted in the last stress period. Answering those questions between meetings — not just at them — has become part of the job.
The annual Rule 38a-1 report gets assembled from scratch each year. The prior year's report is a Word document; the underlying evidence is a new pull from every system. There is no unified record that the CCO can point to as the foundation of the certification. The data exists — it just doesn't live anywhere a CCO can query it.
What a Compliance-Ready Data Layer Requires
Unified Attestation Tracking
Access-person lists, code of ethics acknowledgments, gifts and entertainment logs, political contributions, and annual 17j-1 certifications in a single model — not one spreadsheet per cycle.
Personal Securities Feed Integration
Direct broker feeds from Schwab, Fidelity, Interactive Brokers, and others reconciled to access persons and mapped to pre-clearance and restricted-list history.
NAV Pricing & Fair Value Log
Daily pricing, stale price events, and fair value determinations from the fund admin queryable alongside the holdings they affect — with full lineage back to source.
Trade Surveillance Data
Sub-advisor trade blotters, best execution metrics, affiliated transaction flags, and trade error logs consolidated so exceptions surface in one place.
Board Reporting Workspace
The CCO's board book — 38a-1 annual report, quarterly materials, sub-advisor certifications, service provider oversight — assembled from the warehouse, not rebuilt each cycle.
Evidence with Lineage
Every record tied to a source system, ingestion timestamp, and transformation history so a regulator, auditor, or independent trustee can trace any number back to its origin.
How Milemarker Supports Fund Compliance
Milemarker ingests the evidence the CCO already depends on, from the systems the fund complex already uses, and normalizes it into a firm-owned Snowflake warehouse. Fund administrator pricing logs and fair value determinations (Ultimus, SEI, ALPS, SS&C, BNY Mellon, State Street), custodian and broker personal securities feeds, sub-advisor trade blotters and error logs, HR attestation data, and code-of-ethics records join the advisory CRM and billing data in one model.
Milemarker does not replace the compliance application. MyComplianceOffice, Schwab Compliance Technologies, ComplySci, Global Relay, and the like continue to own the workflow. What changes is that the underlying data is consistent, queryable, and historically consistent — so the CCO isn't reconstructing the evidence each cycle.
Navigator AI lets the CCO ask questions in plain English: "show me all fair value determinations above 5% variance last quarter," "list every pre-clearance exception since the last board meeting," "which access persons have overdue quarterly transaction reports," "how did our large-cap sleeve's trade exceptions trend against last year." Answers come from the firm's own warehouse with source lineage, not from an opaque vendor system.
Milemarker Relay automates the routing and collection: attestation cycles that distribute, chase, and close out; annual 17j-1 certifications that assemble holdings reports from the broker feed and present them to each access person; sub-advisor certification cycles that pull in the sub-advisor's own compliance letter; board report assembly that renders the quarterly book from the warehouse on a schedule.
The firm owns the Snowflake instance. The compliance evidence, the lineage, and the historical record belong to the fund complex, not to a vendor. That matters when a regulator asks for three years of supporting detail, when an auditor needs to test the control, or when the board asks the CCO to show their work.
Who This Is For
Fund Chief Compliance Officers
The CCO of a registered '40 Act fund — whether the fund is a stand-alone complex, a series trust participant, or an ETF issuer — owns the 38a-1 program and the annual certification. A unified compliance data layer turns the annual report from an assembly project into a rendered view, and turns quarterly board reporting from a scramble into a continuous practice.
CCOs with Dual RIA and Fund Responsibility
Many fund sponsors also operate an affiliated RIA, and the CCO of the fund is often the CCO of the advisor. Milemarker's data model covers both sides in the same warehouse, which means the same evidence base supports Form ADV, Rule 204A-1 personal trading, and the 38a-1 program. That unification is especially valuable for firms like Flat Iron Wealth that have grown into proprietary fund sponsorship from an advisory base.
Fund Compliance Operations Teams
The compliance ops function — the analysts who actually run the attestation cycles, reconcile the broker feeds, and assemble the board book — benefits most from the unification. Work that was quarterly, manual, and exception-driven becomes continuous, automated, and investigation-driven. The team stops being stitchers of evidence and becomes investigators of what the evidence reveals.
Fund General Counsel and Independent Trustees
General counsel and the fund's independent board members depend on the CCO's ability to produce supporting detail on demand. A queryable compliance data layer makes that support structural rather than situational. When a trustee asks a question between meetings, the answer can be pulled from the warehouse in the same call.