New York partner Kay Gordon and Philadelphia counsel Matthew Silver co-authored an article titled, “SEC Targets BCPs: What IAs Need To Know,” in Compliance Reporter. Kay and Matthew break down a new rule the SEC proposed on June 28 that, if enacted, would require SEC-registered investment advisers to adopt and implement written business continuity and transition plans (BCPs). Presently, Rule 206(4)-7 under the Advisers Act requires IAs to adopt policies and procedures reasonably designed to prevent violations of the Act.
The article explores the requirements the SEC proposal would impose on BCPs. If the SEC’s proposed rule is adopted, all registered adviser BCs will need to comply with the variety of detailed new requirements, even firms with BCPs that are complaint with the current Rule 206(4)-7.