State regulators to require continuity plans
Model rule outlining policies investment advisers should have in place in case of natural disasters or death will need to be adopted by individual states
Apr 22, 2015 @ 1:10 pm
State securities regulators have advanced a model rule outlining policies investment advisers should have in place to respond to natural disasters or the death or incapacitation of an executive.
The rule, developed by the North American Securities Administrators Association and approved at the organization’s spring conference this month in Washington, requires every adviser adopt written procedures for business continuity and succession planning. It was posted online on Tuesday.
The plan must show how the firm will protect books and records, establish an alternative means of communicating with clients, relocate the office, reassign key personnel and generally minimize disruption to the business.
