The SEC’s Office of Compliance Inspections and Examinations issued a statement on operations and exams during the pandemic. OCIE is still operational and can still run exams. They will be off-site through correspondence, unless necessary to be on site. I assume this means that OCIE is focusing on firms suspected of fraud and is limiting routine exams.
I’ve also heard that OCIE is asking firms about their pandemic response as part of their business continuity plans. For many firms this pandemic is a test of their BCPs.
Some of the SEC questions:
Does the firm have: (i) a written Business Continuity Plan; (ii) a Pandemic Continuity of Operations Plan; and/or (iii) equivalent informal plans or guidance (collectively, “BCP”)?
If so: Briefly describe some of the aspects of the BCP that are particularly applicable to maintaining continuity of business operations when dealing with the COVID-19 pandemic (e.g., personnel working remotely).
Are there any business operations that cannot be performed remotely?
Is the firm prepared to have all of its personnel operate remotely for several weeks (e.g., 3+) or months, if required or appropriate? Are any personnel unable to operate remotely or unable to do so for several weeks or months?
Has the COVID-19 pandemic created hardships for the firm (e.g., financial, human resources, or otherwise)?
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