Financial regulators are responding to the government shutdown by keeping essential functions going with reduced staff, according to contingency plans submitted by the agencies.
The SEC will continue to handle emergency law enforcement matters and investigations “necessary to protect public and private property,” but will cease commencing new investigations “except as necessary for the protection of property.” EDGAR filings and Market Watch activities will remain functional, while the processing and approvals of filings and registrations by investment advisors, broker-dealers and others will be suspended.
The CFTC will immediately cut its staff from 680 to 28; the smaller staff will perform a “bare minimum” of “oversight and surveillance of the futures markets, clearinghouses, and intermediaries.” However, the “vast bulk of the CFTC’s operations will cease” during the shutdown, including enforcement functions such as “the review and investigation of victim complaints” and “initiating actions against wrongdoers.” All rulemaking related to the implementation of Dodd-Frank also will be suspended.
Many other financial regulators – such as the Federal Reserve, the Consumer Financial Protection Bureau, the FDIC and the Comptroller of the Currency – are not affected by the shutdown because their budgets are independently funded outside of the congressional appropriations process.
