By Steve Kansky, Regional Lead (East), Regulatory Compliance, U.S.
The recent government shutdown is creating uncertainty across the financial services landscape, and registered investment advisers (RIAs) are not immune. In August, the U.S. Securities and Exchange Commission (SEC) released its ‘Operations Plan Under a Lapse in Appropriations’, outlining what functions will continue and what will pause during this period.
What’s still operational?
- EDGAR remains active: Filing deadlines are unchanged, and electronic submissions must continue as scheduled
- Core obligations persist: Disclosure requirements and compliance standards remain fully in effect
What is paused or limited?
- Staff-driven processes: Reviews, comment letters and exemptive relief requests are largely on hold
- Non-essential services: Freedom of Information Act (FOIA) requests and similar functions are restricted until appropriations resume
Implications for RIAs
While SEC oversight may be reduced temporarily, your regulatory responsibilities have not changed. Liability exposure remains, and accurate, timely disclosures are critical. A lapse in enforcement does not equate to a lapse in accountability.
Action steps for RIAs
- Stay current on filings: Ensure all submissions are accurate and meet deadlines
- Plan for delays: Build contingencies for slower SEC responses on pending matters
- Strengthen compliance: Maintain robust internal controls and documentation to demonstrate diligence
Why proactive planning matters
When the SEC resumes full operations, there could be an uptick in reviews and enforcement activity. RIAs that have maintained strong compliance practices will be better positioned to navigate this transition smoothly.
The bottom line? The shutdown may slow the SEC, but it does not slow your obligations. Staying vigilant now will protect your firm and your clients.
Our experienced U.S. regulatory compliance team will continue to stay close to developments and provide further updates as relevant. If you wish to discuss what the government shutdown means for your firm and find out how we could help you, please get in touch today.
