SEC Operations During a Government Shutdown

What IAA Members Need to Know

September 29, 2023

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If lawmakers cannot reach an agreement on government funding by the end of this week, a shutdown will occur at the beginning of the fiscal year on October 1.

The IAA is providing more detail about the implications of a government shutdown so that members can prepare accordingly.

SEC Operations during a Government Shutdown

The SEC will operate at a reduced capacity during a government shutdown. Only essential staff will be on hand to perform functions that are necessary to protect human life or property, or to prevent the loss of government assets. This includes:

• Monitoring the markets for fraud and other illegal activity
• Responding to emergencies involving market integrity or investor protection
• Investigating and prosecuting ongoing enforcement cases
• Maintaining critical systems and infrastructure

All other SEC operations will be suspended during a shutdown, including:

• Processing new filings from companies and other market participants
• Reviewing and approving registration statements and other filings
• Conducting inspections and examinations
• Providing assistance to investors, advisers, and other members of the public

Additional information:

• EDGAR, the SEC’s electronic filing system, will remain operational, but staff may not be available to answer questions or aid with filings.
• The Investment Adviser Registration Depository (IARD), the electronic filing system for investment advisers, will remain fully functional and will continue to accept annual and other-than-annual amendments to Form ADV, Form ADV-W, and Form ADV-E filings, but the SEC will be unable to approve new or pending applications for registration by investment advisers.
• The Division of Investment Management will be unable to provide interpretive advice regarding the Advisers Act, rules, or forms, or consider applications for exemptive relief under the Advisers Act.
• While the SEC will “accept” the submission of comment letters, the SEC will not be posting them on its website until after the shutdown ends.
• You will be able to reach an extremely limited number of SEC staff members who will be available to respond to emergency situations.

The IAA will remain open and operating as usual during the government shutdown. We will keep members informed of any changes to meetings or events involving SEC staff.

Please contact us at IAALegalTeam@investmentadviser.org if you have an emergency need to contact the SEC or if you have any questions.