New York partner Kay Gordon was quoted in MLex Market Insight in an article titled, “SEC’s Adviser Transition Plan More Useful as Guidance than Rule, Industry Lawyer Says.” The article highlights Kay’s comments on the topic during her panel at the IAA Compliance Conference.
The SEC proposal would require investment advisers to adopt business continuity and transition plans in case of cyber or other disaster disruptions. Kay suggested that the proposal would be more useful to the industry as guidance rather than as a set rule. She also predicted that with a Republican-controlled SEC, this is a likely outcome.
Kay commented that guidance “would not be as prescriptive and expensive and would allow investment advisers to better tailor their plans both to their businesses and operations and to future developments.”
She added that a controversial part of the proposal that would require firms to implement transition plans to safeguard investor assets if advisers cease or wind down operations would likely be dropped.