SEC Proposed Rule to Require Adoption of Written Business Continuity Plans

The SEC proposed a rule requiring registered investment advisers (“RIAs”) to adopt and implement written business continuity and transition plans. 

The SEC’s objective is to preserve the continuity of advisory services in the event of business disruptions including natural disasters, cyber-attacks, technology failures and the departure of key personnel. RIAs would be required to annually review the adequacy and effectiveness of their plans and retain certain related records.

“While an adviser may not always be able to prevent significant disruptions to its operations, advance planning and preparation can help mitigate the effects of such disruptions and in some cases, minimize the likelihood of their occurrence, which is an objective of this rule,” said SEC Chair Mary Jo White.

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Duff & Phelps is an award-winning global provider of compliance and regulatory consulting services to the financial services industry. Clients consult our team of specialists at every stage of their business lifecycle to meet regulatory obligations and navigate the rapidly changing regulatory landscape. Our multidisciplinary team is drawn from leading financial institutions, regulators, government authorities, legal and advisory firms.

Based in key financial centers, we are closely connected with regulators and industry associations so that our clients have the best available information on regulatory requirements and trends. We operate seamlessly across borders to provide clients with cross-jurisdictional advice and integrated expertise.