In IA Watch, Investment Management Counsel Comments on Business Continuity and Transition Planning

On June 28, the U.S. Securities and Exchange Commission (SEC) proposed a new rule that would require registered investment advisers to adopt and implement written business continuity and transition plans. An article in the Aug. 15 edition of IA Watch titled “Few Words Fill Proposed BCP/transition Rule, but Preamble Offers Much Guidance” outlines that in the SEC’s proposed rule, a substantial amount of information is contained in the 26 pages of preamble, rather than in “the actual regulatory language [which] runs a mere 582 words.” “I think there’s more to the rule than what meets the eye at first blush,” stated investment management counsel David Tittsworth (Washington, D.C.). He notes that despite a lengthy foreword, “the rule is what matters,” adding, however, that ““you have to take . . . seriously. . . what your regulator writes in its preambles.”