SEC Issues Risk Alert on Investment Advisers' Business Continuity and Disaster Recovery Planning

The SEC Office of Compliance Inspections and Examinations ("OCIE") issued a Risk Alert, on business continuity and disaster recovery planning for investment advisers, which was prompted by a review of responses to Hurricane Sandy. The alert follows a joint advisory issued on August 16 by OICE, the CFTC's Division of Swap Dealer and Intermediary Oversight, and FINRA; however, this Risk Alert focuses exclusively on investment advisers. The alert makes observations in the following areas:

• Preparation for widespread disruption;
• Planning for alternative locations;
• Preparedness of key vendors;
• Telecommunications services and technology;
• Communication plans; and
• Reviewing and testing.

See: SEC Risk Alert; SEC Press Release. See also: SEC, CFTC and FINRA Issued a Staff Advisory on Business Community and Disaster Recovery Planning (August 19, 2013).