At that point, the business will cease and the clients will assume responsibility for their own accounts with a minimum of disruption.
Clients have continuous and unimpeded access to funds and records at all times through the firm's correspondent broker. in English and have written more than 4,000 articles for regional and national publications.
Creating a business continuity (BC) plan from scratch can be daunting, so we've included a sample business continuity plan template as a first step.
Download our free template and begin creating a customized business continuity plan for your organization.
A well designed plan will help you minimize the risk that an emergency poses to your employees, clients and suppliers, the continuity of your business operations and your bottom line.
FINRA is providing a template as an optional guide to small introducing firms to assist them in fulfilling their need to create and maintain business continuity plans (BCPs) and emergency contact person lists under FINRA Rule 4370.If the advisor is seriously ill, dead or of unsound mind, the advisor’s wife – a well-established marketing professional – has instructions in place to notify clients, all of whom are personally known to her.She is also instructed in how to terminate the business as a registered institution, with notification to the SEC.business operational during an unforeseen event, such as a disaster.It institutes risk management procedures and processes, with the goal of avoiding or reducing disruption of mission-critical services for the business, while restoring all operations as rapidly and smoothly as possible.Because the business records are stored in more than one physical location and are also stored on the cloud, where they are available regardless of the advisor's location.As long as the advisor is in reasonably good health and of sound mind, no physical disaster or emergency is likely to impede the firm’s few and occasional regulatory reporting obligations.Since the firm's correspondent brokerage has the same SEC-mandated information availability obligation as the advisory firm, client records kept at the brokerage are also available at an offsite location maintained by the brokerage.Thus, client records are stored and continuously maintained at at least four separate physical locations and on the cloud.The SEC also requires that each firm has in place an alternative means of communicating with clients.Having alternative means available allows the firm to continue to handle client accounts in a timely way in the event of a catastrophe.