The final step
The final step broker-dealers must take in order to achieve total data compliance is a sound disaster recovery (DR) strategy. This plan must be designed to ensure that critical data and systems can be restored in the event of a business disaster or temporary disruption. In relation to data compliance, the specific components of a broker-dealers DR plan must address three aspect of the FINRA/NASD 3510 Business Continuity Planning template:
(1) Data back-up and recovery (hard copy and electronic)
(2) Protection of all mission critical systems
(3) Assure customers` prompt access to their funds and securities in the event of operational failure
The rule further requires that firms must update their business continuity plans upon any material change and, at a minimum conduct an annual review of their plans. Each member also must disclose to its customers how its business continuity plan addresses the possibility of a future significant business disruption and how the member plans to respond to events of varying scope.
Rule 3510 - AdvisorVault has the answer
Rule 3510 requires that broker-dealer firms create and maintain a business continuity plan (BCP) and enumerates certain requirements that each plan must address. AdvisorVault helps with several key components of this mandate and transfers all mission critical data and systems to its remote data centre each night as required in SEC BCP best practices. Further, In the event of a minor disruption or a major disaster, all data can be restored back to the original location or to an alternate site such as a broker-dealer`s branch/home office, disaster recovery site immediately upon declaration of a disruption all data systems can be restored within 48 hrs.
Seamlessly integrated with the FINRA Small Firm Emergency Partner Program
To help firms manage significant business disruptions, FINRA has developed - with input from introducing and clearing firms and other regulators - the Small Firm Emergency Partner Program. AdvisorVault integrates with this program as a voluntary addition to your BCP and is designed to strengthen and further assure timely recovery of critical data and systems.
Should a significant business disruption occur, through this program broker-dealer firms can rely on AdvisorVault to facilitate the transfer of all critical data and systems to the pre-designated partner firm. The partner firm will then have all required records to assist in accessing clients funds and other assets when the affected firm is unable to. Once the firm has recovered, normal business operations may resume
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