It remains to be seen, but speculation is building in the private funds industry that business continuity planning is the SEC’s next exam focus area.
As a financial services industry cloud provider, Navatar takes the topic of business continuity planning seriously. On Wednesday, September 21st (11:00am EST), we will touch upon business continuity, cybersecurity, valuation and fee disclosures with a SEC examiner as part of a wider discussion on private equity exams, which clients tell us are becoming tougher as the years go on.
The commission took a strong interest in business continuity planning after Hurricane Sandy exposed Wall Street’s vulnerability to major natural disasters in 2013. That concern never really went away, but a recent two-year sweep of the industry shifted regulators’ focus towards bigger concerns like fee disclosures and conflicts of interest. Fees no doubt will remain an exam priority, but with that sweep over, and a general outcome of improved disclosures, it appears that business continuity planning is back on the table.