New Continuity Plans Advanced By Securities Regulator

Posted on April 29th, 2015 at 12:02 PM
New Continuity Plans Advanced By Securities Regulator

From the Desk of Jim Eccleston at Eccleston Law LLC:

The North American Securities Administrators Association has developed a model rule outlining policies that investment advisers should have in place to respond to natural disasters or the death or incapacitation of an executive.

The rule requires every adviser adopt written procedures for business continuity and succession planning.

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.

Advisers face significant risks if they become unable to serve clients, either temporarily or permanently. Failing to address these risks with a business continuity plan can result in harm to advisers' clients, exposure to regulatory actions and litigation for failure to satisfy legal, regulatory or contractual duties.

The rule allows flexibility in the plans. They can vary based on the adviser's size, services and locations. State regulators oversee advisers with less than $100 million in assets under management.

The model rule must be adopted by individual states before going into effect.

The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

Tags: Eccleston Law, North American Securities Administrators Association, NASAA, James Eccleston

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