Series 65: Business Continuity Plans And Emergency Contact Information

Business Continuity Plans and Emergency Contact Information

According to an NASAA model rule, investment advisers must establish, implement, and maintain written procedures related to a business continuity plan (BCP) and a succession plan. The BCP must identify procedures to keep the business running in the event of an emergency or significant business disruption. A succession plan is a plan for who will take over certain activities if certain key personnel die or become unavailable.

The BCP must be designed to enable the investment adviser to meet its existing obligations to clients. The elements that comprise a business continuity plan or a succession plan may be tailored to the size and needs of the firm. For example, a succession plan for a sole proprietorship will be different from one that is a large C-corp. Every BCP should include provisions that:

• • Provide for the protection, back-up, and recovery of the adviser’s books and records
• • Have a method for communications with customers, employees, and regulators
• • Provide for office relocation, if necessary
• • Provide for responsible persons to act in the event of death or disability of key personnel
• • Contain methods to minimize service interruptions and client harm

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