SEC Proposes Rules to Require Business Continuity and Transition Plans for Registered Investment Advisers
July 7, 2016
On July 7, 2016, the firm published an alert titled “SEC Proposes Rules to Require Business Continuity and Transition Plans for Registered Investment Advisers.”
On June 28, 2016, the Securities and Exchange Commission (the “SEC”) released proposed rules under the Investment Advisers Act of 1940, as amended (the “Advisers Act”) to require all investment advisers that are registered with the SEC to adopt and implement business continuity plans (“BCPs”) and transition plans (the “Proposed Rule”). Under the Proposed Rule, registered investment advisers would be required to include certain specific components in the plans with the emphasis and focus of each component tailored to the circumstances of an adviser’s business, operations, and risks. This memorandum highlights notable aspects of the SEC’s approach and the key requirements under the Proposed Rule.