Pursuant to its Operations Plan Under a Lapse in Appropriations and Government Shutdown, the SEC has staff in place to monitor the markets and respond to emergency situations involving market integrity and investor protection. A summary description of some of the key activities being performed during this period, organized by the Division or Office with principal responsibility, appears below.
Division of Corporation Finance
The Division of Corporation Finance is engaged in limited monitoring of filings (e.g., registration statements) and inquiries to determine whether to take appropriate action under the Operations Plan consistent with investor protection and preservation of property.
Division of Enforcement
The Division of Enforcement continues to monitor for submissions to the Tips, Complaints, and Referrals (TCR) system that appear to allege conduct that may pose a risk of imminent harm to investors or our markets.
Staff is available to handle emergency enforcement matters, including temporary restraining orders and/or imminent deadline concerns, or investigations of ongoing fraud or misconduct that poses a threat of imminent harm to investors.
Some matters in litigation continue in order to comply with schedules that have been set by domestic and foreign courts and/or to avoid a delay that would prejudice the Commission’s litigation position.
Division of Investment Management
The Division of Investment Management continues to monitor the activity of registered funds, including the flows of funds to and from mutual funds and money market funds; trading activity in exchange-traded funds; funds that present particular risks to investors, such as mutual funds with a high level of illiquid securities or a high level of redemptions; and changes in industry exposure or market access that may affect registrants or other market participants.
The Division of Investment Management is engaged in limited monitoring of filings and registrant inquiries to determine whether to take appropriate action under the Operations Plan consistent with investor protection and preservation of property.
Division of Trading and Markets
The Division of Trading and Markets continues to track market activity and monitor for systems issues or other events that could disrupt the fair and orderly operation of the securities markets.
The Division of Trading and Markets is engaged in limited monitoring of filings and registrant inquiries to determine whether to take appropriate action under the Operations Plan consistent with investor protection and preservation of property.
Office of Compliance Inspections and Examinations
The Office of Compliance Inspections and Examinations has staff available to perform emergency examinations to protect investor property, including exams focused on ongoing fraud or conduct that poses a threat of imminent harm to investors, such as ongoing fraud or misappropriation, including conduct identified by TCRs. In addition, the Office’s CyberWatch function has staff available to continue real-time monitoring and analysis of, and engagement regarding, system disruptions, intrusions and compliance issues at critical market infrastructure entities in the interest of protecting property.
Electronic Filing and Support
The SEC’s EDGAR electronic filing system remains operational and continues to accept submission of filings. Staff is available to act on filer requests for EDGAR access codes and answer emergency questions regarding EDGAR submissions. The electronic filing systems for investment advisers (IARD) and broker-dealers (Web CRD) also continue to operate.
Periodic Assessments of Scope of Operations
As contemplated by the Operations Plan, the Contingency Planning Committee, in consultation with the Office of General Counsel, will periodically assess SEC functions that should be maintained during a lapse in appropriations. In connection with these assessments, from time to time, we will except certain senior staff for limited periods of time to assess the matters under their purview for the purpose of identifying whether any such matters require attention consistent with the Operations Plan (for example, to prevent an imminent and significant threat to the protection of property).
Internal and External Event Programs
As a general matter, we are postponing non-excepted internal and external event programs, including, for example, the scheduled January 28th meeting of the Fixed Income Market Structure Advisory Committee, the February 7th meeting of the Investor Advisory Committee and our events related to the Martin Luther King, Jr. holiday. We expect to reschedule these and similar event programs or incorporate them into future event programs.
Modified: Jan. 22, 2019