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ARTICLE · 07 JULY 2016

SEC Issues Guidance On Fund Business Continuity Planning

Ropes & Gray LLP
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The Guidance also states that staff reviews of business continuity practices in the wake of Hurricanes Katrina and Sandy underlie the publication of the Guidance.

United StatesFinance and Banking
Ropes & Gray LLP'S Investment Management Practice Group
Ropes & Gray LLP'S Investment Management Practice Group
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On June 28, 2016, the SEC's Division of Investment Management issued a Guidance Update titled, Business Continuity Planning for Registered Investment Companies (the "Guidance," available here). The Guidance states that a fund complex should consider its compliance obligations under the federal securities laws when assessing its ability to continue operations during a business continuity event. The Guidance discusses various steps that the SEC staff believes a fund complex should consider to evaluate its business continuity plan ("BCP") and the BCPs of its critical service providers to lessen business continuity risks for funds and investors.

On the same date that the Guidance was published, the SEC published a release (available here) containing proposed Rule 206(4)-4 under the Advisers Act. If adopted, Rule 206(4)-4 would require every SEC-registered investment adviser to adopt and implement a written business continuity and transition plan reasonably designed

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