By Buddy DoyleShare Article
New SEC Rule – Plan to Fail
Benjamin Franklin once said “If you fail to plan, you are planning to fail”. But the SEC this week issued a new rule proposal that requires you to create a plan to fail. And it is a really good idea. The proposed rule will require SEC-registered investment advisors to adopt and implement written business continuity (“BCP”) and transition plans.
At Oyster, we have always believed that an effective business continuity plan (BCP) is vital to make sure your firm can provide core services during a crisis. Too often, firms take a technology-based approach to business continuity planning, rather than determining how to provide the important services to clients during different scenarios. A solid transition plan will ensure that clients are cared for in the event of a significant business disruption.
Good BCP plans:
- Are tailored to your firm’s needs with an eye towards cost effectiveness
- Are aligned with Industry Best Practices
- Prepare you to manage and recover from unexpected, high-impact events such as key person dependencies, natural disasters/weather events, office accessibility, and technology outages
- Prioritize activities that mitigate common business disruptions
- Will allow you to continue to run and protect your firm during a crisis
Our belief is that details really matter in these plans. If you want to know if you have enough detail in your plan to serve your clients, test the plans. It is better to find out that your plan needs to me amended through a test than in a real life experience.
How Oyster Can Help:
Oyster Consulting can review and/or develop your firm’s business continuity and transition plan. Oyster will not only help you understand potential problem areas, but will also identify best practices and provide training to your team to ensure they are aware of their responsibilities.
Oyster Solutions software is a powerful tool to implement and enhance your compliance program. Among its many other features, Oyster Solutions software includes policies and procedures unique to your firm’s organizational structure and lines of business. Oyster can also help you protect your firm through support staffing or outsourcing.
Whether you are looking to change from self-clearing to fully-disclosed (or vice-versa), exploring your clearing options or starting a broker-dealer, Oyster can assist with the assessment, analysis, vendor selection and conversion processes.Download