Business Continuity Plan Archives

Broker Dealers and Business Continuity

Posted on September 1, 2023 by SCM Communications

Is your broker dealer ready for disaster? Across the United States, various areas are facing disasters – fires in Hawaii, hurricanes in the Southeast, and tornadoes across the Midwest. These are just a few of the situations where Business Continuity Plans (“BCPs”) are imperative to be in place and current. FINRA Rule 4370 requires every broker dealer to have written procedures in place in the event that the broker dealer cannot be available in a time of emergency. Any event that disrupts business as usual gives rise to the needs for BCPs. This includes natural disasters, power outages, even events Read more about Broker Dealers and Business Continuity[…]

BCP and COVID-19: Considerations for Firms

Posted on March 27, 2020April 8, 2020 by SCM Communications

Many financial service firms have written supervisory procedures in place for business continuity planning (BCP). Tucked somewhere on a server or in a binder, many plans have been collecting dust. More than likely, these plans are only taken out during regulatory exams, branch audits, or internal testing.

Business Continuity – Weather-Related Events

Posted on August 19, 2016October 12, 2018 by SCM Communications

Recent U.S. natural disasters, especially Hurricane Sandy in 2012, underscore the importance of having a business continuity plan (“BCP”) that adequately addresses weather-related events. These natural disasters, though tragic, have taught financial services firms several valuable lessons on planning for hurricanes, blizzards, floods, earthquakes, tornadoes, wild fires, and other natural disasters. We share some observations and lessons learned to help broker-dealers and investment advisers prepare for future natural disasters. Read More…

Business Continuity Plan: Pandemic Preparedness

Posted on August 14, 2016December 20, 2017 by SCM Communications

In accordance with FINRA Rule 4370 (Business Continuity Plans and Emergency Contact Information), a broker-dealer must have a business continuity plan addressing numerous elements, one of which is financial and operational assessments. This element requires the broker-dealer to assess the operational and other risks related to a significant business disruption, such as a pandemic. Public health officials report that the Zika virus, free interracial dating websitesan infectious disease transmitted by mosquitoes, has reached the continental United States and is being locally transmitted in southern states. Now would be a good time for broker-dealers and other financial institutions to assess the adequacy of their business continuity plans for dealing with local or widespread outbreaks of the Zika Read More…

Loss of Key Personnel: How to Prepare

Posted on August 5, 2016October 12, 2018 by SCM Communications

The loss of key personnel can have a devastating effect on a financial institution, especially small investment advisory firms. In a worst-case scenario, the loss forces the firm to shut down and leaves clients without a financial advisor to manage their money. The North American Securities Administrators Association (“NASAA”) addressed the loss of key personnel by state-registered investment advisers through the adoption of Model Rule 203(a)-1A, which governs business Read More…

Business Continuity and Transition Plans for RIAs

Posted on July 7, 2016July 17, 2018 by SCM Communications

The Securities and Exchange Commission (“SEC”) recently proposed a new rule that would require registered investment advisers (“RIAs”) to adopt and implement written business continuity and transition plans. The proposed rule is designed to ensure that RIAs have plans in place to address operational and other risks related to a significant disruption in the adviser’s operations in order to minimize client and investor harm. Read More…