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Finra Business Continuity Compliance

Posted by Jack Duval

Nov 4, 2012 3:20:49 AM

In the better-late-than-never file, Finra is reminding members of their obligations for business continuity plans.  (Finra)

Finra Rule 4370 covers these requirements.  (4370)  Here's the overview:

(a) Each member must create and maintain a written business continuity plan identifying procedures relating to an emergency or significant business disruption. Such procedures must be reasonably designed to enable the member to meet its existing obligations to customers. In addition, such procedures must address the member's existing relationships with other broker-dealers and counter-parties. The business continuity plan must be made available promptly upon request to FINRA staff.
(b) Each member must update its plan in the event of any material change to the member's operations, structure, business or location. Each member must also conduct an annual review of its business continuity plan to determine whether any modifications are necessary in light of changes to the member's operations, structure, business, or location.
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Topics: FINRA, Hurricane Sandy, regulation Rule 4370, zombie apocalypse, business continuity plans, Compliance, regulation.

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