Wednesday, January 13, 2016

Illinois Proposes Mandating IA Business Continuity Plan

By Jay Fishman, J.D.

The Illinois Securities Department has proposed requiring investment advisers to create, implement and maintain a written business continuity and succession plan. The plan would be based on the facts and circumstances of the investment adviser’s business model, including the size of the firm, the types of services provided, and the adviser’s number of locations.

An adviser’s plan would need to at least:
  • Protect, backup and recover books and records;
  • Provide an alternative way for the adviser to communicate with customers, key personnel, employees, vendors, service providers and regulators;
  • Provide for office relocation if the adviser’s principal place of business becomes temporarily or permanently unavailable;
  • Allow duties to be reassigned to qualified persons following the death or unavailability of key personnel; and 
  • Minimize service interruptions and client harm resulting from a significant business disruption.