SEC Plans for the Federal Goverment Shutdown

Securities and Exchange Commission Plans for the Federal Government ShutdownYesterday the Securities and Exchange Commission issued a statement detailing its scope of operations in the event Congress doesn’t reach an agreement on the federal budget by midnight tonight.

Approximately 92% of the Commission’s 3,969 employees will be furloughed if the federal government shuts down.

Meaning, while the EDGAR filing system will remain functional, there will be no staff available to process filings, provide interpretive guidance or issue no-action letters. There will also be no staff available to address investor questions or complaints. The Public Reference Room will be closed and only limited mail will be processed.

Dodd-Frank and other rule making comment letters received via the Commission’s website will be posted, but on a delayed basis.

There will be limited Division of Enforcement staff available, but only to handle emergencies and certain other critical matters, such as reported allegations of fraud or securities law violations, and to handle ongoing  matters that can’t be postponed.

In case of an emergency, the Commission has published a list of contact information:

Securities and Exchange Commission Contact Info During Government Shutdown

Other Federal Agencies

Among other affected federal agencies:

The federal court system will continue to operate for up to 2 weeks using non-appropriation funds. After two weeks the individual federal courts will limit their operations to essential activities in accordance with their own contingency plans.

The United States Patent and Trademark Office will continue to operate for up to 6 business days using non-appropriation funds. The USPTO has not yet released a contingency plan.

The Federal Trade Commission released its contingency plan today. Approximately 76% of the FTC’s staff will be furloughed if the government shuts down, but the FTC will still be accepting new Hart-Scott-Rodino Antitrust Improvements Act filings.

The Department of Health and Human Services, of which the Food and Drug Administration is an agency, also released its contingency plan today. Approximately 86% of the FDA’s staff will be furloughed if the government shuts down.

Finally, the Department of Treasury, of which the Internal Revenue Service is an agency, released its contingency plan today.  The IRS will still be accepting returns but all audits and examinations will be postponed for the duration of any furlough.

CNN Politics has a handy two page chart that details which federal agencies and services will be affected available here.

Print Friendly, PDF & Email

Leave a Reply