Business Continuity Plans (BCP)
Chapters in this video
- 0:00 The raccoon disaster: why every firm needs a BCP
- 1:13 FINRA's core requirement: meet obligations to customers
- 2:09 Seven required categories in the survival kit
- 3:12 Small firm exemption trap and the flexibility rule
- 4:15 Material changes trigger immediate updates
- 5:05 Two-hat approver: senior management and registered principal
- 5:55 Two emergency contacts and the principal requirement
- 6:55 Written customer disclosure for asset access
- 7:25 Rapid-fire exam recap
What this video covers
- The seven categories every business continuity plan (BCP) must address, from data backup and recovery to regulatory reporting
- Why no member firm is exempt from the BCP requirement, regardless of size, and what flexibility actually means
- The immediate update rule: when a material change to operations, structure, business, or location triggers a BCP revision
- Annual review requirements and why the BCP is never a set-it-and-forget-it document
- The two-hat rule: who must approve the plan and conduct the annual review, and why senior management alone is not enough
- The emergency contact requirement: exactly two persons registered with FINRA, with at least one being a registered principal
- Customer disclosure obligations and how the firm must explain in writing how clients access funds during a disruption
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete SIE course in the app is free too, including adaptive practice questions and spaced-repetition flashcards.