Under Rule 206(4)‑7 of the Investment Advisers Act of 1940 (Advisers Act) – the so‑called “compliance rule” – private fund managers are required to adopt policies and procedures reasonably designed to ensure compliance with the Advisers Act. Managers are also required to designate a CCO, who is responsible for administering the compliance program. A firm’s principals, however, cannot simply appoint a CCO and then ignore the compliance program. The SEC expects principals to effectively supervise the compliance function, and failing to do so may have serious legal and reputational consequences. To help foster productive discussions between a firm’s principals and compliance, Kroll created a list of 13 conversation starters. The Private Equity Law Report recently spoke to Ken C. Joseph, managing director and head of the financial services compliance and regulation practice for the Americas at Kroll, about those questions. This second article in a two-part series covers the conversation about the importance of each question. The first article presented the discussion on the relationship between firm principals and compliance; why the 13 questions were created and how they are meant to be used; and the SEC’s likely view of a firm that uses such questions. For additional commentary from Joseph, see “PLI Panel Provides Regulator and Industry Perspectives on Ethical and Compliance Challenges Associated With Private Fund Investor Relations” (Jun. 20, 2013).