While the SEC does not have specific rules about the type of business continuity plan an asset manager must have during times of crisis, asset management partner George Raine outlines in Fund Intelligence how it is part of a fund group’s fiduciary responsibility to make sure they can continue operating in the case of a shutdown. In the March 25 piece titled “Asset managers empty emergency supplies to support health workers,” George highlights that “[i]f there are situations where operationally an asset manager breaks down or there’s a significant loss to investors or clients as a result of their lack of preparedness,” he added, “whatever the cause of that lack of preparedness was will certainly be a focus going forward.” Specific to the COVID-19 emergency, George adds that “Certainly as everyone learns from this particular crisis … the regulators will be reacting to it and kind of look into whether any asset managers fell short in being prepared or dealing with this current situation.”
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