Firms may Struggle to meet SEC Compliance Deadlines
News and Alerts
Brief Introduction
As the SEC pushes to finalize over twenty rules and amendments in 2023.
Firms with limited resources may struggle to meet the compliance deadlines if they are scheduled too close together.
SEC Commissioner Uyeda, with IAA President and CEO Karen Barr expressed some concerns at the recent Investment Adviser (“IAA”) Compliance Conference.
Overwhelming Deadlines for Compliance Departments
- Uyeda expressed that the list of rules being finalized could not feasibly have their deadlines all at the same time.
- Barr discussed that even large firms will be overwhelmed by these finalized rules, because the same staff would likely have the task of implementing all of the rules.
- Rules that had previously been finalized have deadlines extended into the Spring of 2024.
- If making these deadlines is untenable, Uyeda fears that the industry may not take deadlines seriously going forward.
- Both Uyeda and Barr remarked on the difficulties created by the proposal on outsourcing services, considering the lack of leverage firms have when dealing with large, third-party vendors.
- William Birdthistle, the director of the SEC’s Investment Management Division, reminded guests that the SEC is trying to get ahead of preventable problems, because people tend to ask where the regulators were when problems arise.
Vigilant’s Conclusion
As the SEC continues to propose new rules and amendments, Firms recognize that investing in compliance resources early can decrease larger regulatory burden down the line.
Compliance departments will likely be under significant strain as they work to create, integrate, and monitor new policies that satisfy the new regulations.
Our team provides end-to-end compliance solutions, bringing both experience and efficiency to help your employees focus on your business while we handle the increasingly complex and dynamic regulatory environment.