Driscoll added that his staff is focusing on an array of industry and market issues they are sharing with officials and staff at the Treasury Department and Federal Reserve Board and other agencies, including registrant capital and liquidity issues.
“No one’s BCP [business continuity plan] is working well right now,” Driscoll noted, while admitting that his division made a mistake early in the coronavirus crisis by asking a firm that was undergoing an SEC exam for written answers to a lengthy set of BCP questions.
“That’s not going to happen again,” he said. “These are verbal conversations going forward meant to be a brief, high-level discussion. It was unfortunate how it played out. But this isn’t what we’re doing [with BCP questions] any more. These are meant to be more informal discussions.”
What should firms do to document why they may ask for extensions or take advantage of delays in filings? Driscoll said the best bet for firms is to make extemporaneous notes decision-by-decision, discussing the underlying reasons behind their decisions.
“Be careful how you are handling crisis management scenarios,” Driscoll advised. “Make sure you document them and pay a lot of attention to showing you are exercising your role as fiduciary by having extemporaneous notes.”
Driscoll’s suggestions for advisors come as the SEC announced today it is providing investment advisors with additional time and relief with respect to filing Form ADV and Form ADV Part 1A.