Business Continuity Planning Creation, Implementations and Maintenance
Each member must create and maintain a written business continuity plan identifying procedures relating to an emergency or significant business disruption. Procedures should be designed to enable firms to meet its compliance obligations to customer. Firms are required to disclose to customers where they will have access to their accounts in an emergency situation and at the inception of an account relationship.. The procedures should also address the firms relationships with other broker-dealers and counter-parties. The business continuity plan must be made available promptly upon request to FINRA staff and should be included on the firms web site.
The plan should be updated in the event of any material change to the member’s operations, structure, business or location. Each firm should also conduct an annual review of its plan to determine whether any modifications are necessary in light of changes to the member’s operations, structure, business, or location.
Each plan must have the following:
● Data back-up and recovery (hard copy and electronic);
● All mission critical systems;
● Financial and operational assessments;
● Alternate communications between customers and the member;
● Alternate communications between the member and its employees;
● Alternate physical location of employees;
● Critical business constituent, bank, and counter-party impact;
● Regulatory reporting;
● Communications with regulators; and
● How the member will assure customers’ prompt access to their funds and securities in the event that the member determines that it is unable to continue its business.