“We enjoy the process far more than the proceeds.”
Business Continuity Plan
Emergency Contact Persons
The firm’s two emergency contact persons are;
Bruce M. Meyers
Primary Phone #: 646-442-0603
Fax #: 212-742-4259
Secondary Phone #: 718-948-5948
Fax #: 718-948-5948
Primary phone #: 646-442-0605
Fax #: 212-742-4260
Secondary Phone #: 212-742-4200
The firm will provide FINRA with the contact information for the two emergency contact persons: (1) name; (2) title; (3) mailing address; (4) email address; (5) telephone number; and (6) facsimile number through the FINRA Contact System (FCS). Mitchell Halpern will promptly notify FINRA of any change in this information through FCS (but no later than 30 days following the change) and will review, and if necessary update, this information within 17 business days after the end of each calendar year.
Rule: FINRA Rule 4370(f); NASD Rule 1160.
Our firm’s policy is to respond to a Significant Business Disruption (SBD) by safeguarding employees’ lives and firm property, making a financial and operational assessment, quickly recovering and resuming operations, protecting all of the firm’s books and records, and allowing our customers to transact business. In the event that we determine we are unable to continue our business, we will assure customers prompt access to their funds and securities.
Significant Business Disruptions (SBDs)
Our plan anticipates two kinds of SBDs, internal and external. Internal SBDs affect only our firm’s ability to communicate and do business, such as a fire in our building. External SBDs prevent the operation of the securities markets or a number of firms, such as a terrorist attack, a city flood, or a wide-scale, regional disruption. Our response to an external SBD relies more heavily on other organizations and systems, especially on the capabilities of our clearing firm and outside vendors.
Should Meyers Associates, L.P. ever experience an internal SBD where we not able to access our New York location, or the New York location became inoperable, we intend to continue to do business during such a scenario. We anticipate recovery time to be as little as a matter of hours to one or two full business day, depending upon the severity of the disruption.
General information regarding our intended responses would be communicated to clients on the fastest available means, be it phone, cellular phone, e-mail, or our website. The New York office can be reached at 212-742-4200, 646-442-0610, 800-606-4400 or by contacting our clearing firms as described on our web-site, at www.meyersassociateslp.com, or through the emergency contacts listed above.
Should Meyers Associates, LP. experience an external SDB, which would prevent the operation of the securities markets in the New York region; such as a terrorist attack, a city flood, or a wide-scale, regional disruption of some type, it is our intent is to direct our operations from the homes of senior management.
Meyers Associates, L.P. is highly dependent upon the services of our vendors, and our ability to operate subject to an external SDB would depend upon the availability of our vendors and alternate vendors. Vendors, such as our clearing agents have robust BCP plans and would expect to continue operations via the Internet. It is the intent of Meyers Associates, L.P. to continue operations during an external SDB. We anticipate recovery time at one full business day to a full week depending upon the severity of the disruption.
General information regarding our intended responses would be communicated to clients on the fastest available means, be it phone, cellular phone, e-mail, or our website at www.meyersassociateslp.com. The New York office can be reached at 212-742-4200, 646-442-0610, 800-606-4400 and through the emergency contacts listed above. Should clients be unable to communicate with Meyers Associates, L.P. please contact our clearing firms, who will be able to provide further assistance, as follows:
Sterne Agee Clearing
513 Shades Creek Parkway
Birmingham, Alabama 55209
Phone # 888-678-3763
9300 Underwood Avenue, Suite 400
Omaha, Nebraska 68114
Phone # 866-774-0218
Our two clearing agents carry all of our client accounts; which include all securities positions and client funds. Both of our clearing firms are located out of the New York region. Information on contacting our clearing firms is available on our website at www.meyersassociateslp.com and described below in the section Business Description.
Richard Onesto, CFO, and a registered principal, is responsible for conducting the required annual review along with other senior management and for approving this plan. Bruce M. Meyers and Richard Onesto have the authority to execute this plan.
This plan is subject to modification. Any updated summary will be promptly posted on our Web site at www.meyersassociateslp.com. Customers may also obtain updated copies of the BCP by requesting a written copy by mail.
Approval and Execution Authority
Richard Onesto, CFO, a registered principal, is responsible for approving the plan and for conducting the required annual review. Mitchell Halpern, CCO, has the authority to execute this BCP.
Plan Location and Access
Our firm will maintain copies of its BCP plan and the annual reviews, and the changes that have been made to it for inspection. An electronic copy of our plan is located on our Chief Compliance Officer’s computer titled “BCP Template 5-12-10.doc” in the file folder “Mitch Halpern” and in his home computer in the file folder “My Documents”. There is also a “hard” copy in our Chief Compliance Officer’s files.
Rule: FINRA Rule 4370(b), (d) and (e).
Our firm conducts business in equity, fixed income, and derivative securities. Our firm is an introducing firm and does not perform any type of clearing function for itself or others. Furthermore, we do not hold customer funds or securities. We accept and enter orders. All transactions are sent to market makers or our clearing firms, which execute our orders, compares them, allocates them, clears and settles them. Our clearing firms also maintain our customers’ accounts, can grant customers access to them, and delivers funds and securities. Our firm services only retail customers and institutional customers.
Our clearing firms are;
Sterne Agee Clearing
513 Shades Creek Parkway, Suite 100B
Birmingham, Alabama 55209
Telephone #: 888-678-3763
Alternate Contact Person:
9300 Underwood Avenue, Suite 400
Omaha, Nebraska 68114
Telephone #: 866-774-0218
Alternate Contact Person:
Office Location #1
Our Location #1 Office is located at 45 Broadway, New York, NY 10006-4017. Its main telephone number is 212-742-4200. Our employees may travel to that office by means of foot, car, subway, train, bus or boat. We engage in order taking and entry and some record keeping at this location.
Alternative Physical Location(s) of Employees
In the event of an SBD, the majority of our administrative and support staff will work from their homes. Senior management is capable of accessing the firm’s records by means of a remote access computer program. Our administrative and support staff will have the ability to work from their homes.
Rule: FINRA Rule 4370(c)(6).
Customers’ Access to Funds and Securities
Our firm does not maintain custody of customers’ funds or securities, which are maintained at our clearing firms, Sterne Agee Clearing and Legent Clearing. In the event of an internal or external SBD, if telephone service is available, our registered persons will take customer orders or instructions and contact our clearing firm on their behalf, and if our Web access is available, our firm will post on our website that customers may access their funds and securities by contacting Sterne Agee Clearing or Legent Clearing. The firm will make this information available to customers through its disclosure policy.
If SIPC determines that we are unable to meet our obligations to our customers or if our liabilities exceed our assets in violation of Securities Exchange Act Rule 15c3-1, SIPC may seek to appoint a trustee to disburse our assets to customers. We will assist SIPC and the trustee by providing our books and records identifying customer accounts subject to SIPC regulation.
Rules: FINRA Rule 4370(a); Securities Exchange Act Rule 15c3-1; see also 15 U.S.C. § 78eee.
Data Back-Up and Recovery (Hard Copy and Electronic)
Our firm maintains its primary hard copy books and records and its electronic records at 45 Broadway, New York, NY 10006. Richard Onesto, CFO, 646-442-0610, is responsible for the maintenance of these books and records. Our firm maintains the following document types and forms that are not transmitted to our clearing firm:
Financial Records – Anis Din – Welser LLP – 212-385-6787
E-mail Records – Glenn Rogers Director, Audits & Discovery – Global Relay –
Personnel Files – Stanley Goldstein, Esq. Becker & Poliakoff, LLP – 212-599-3322
Our firm maintains its back-up hard copy books and records at 45 Broadway, New York, NY 10006. These records are paper copies. Our firm backs up its paper records by copying and taking them to our back-up site. We back up our records every [time period].
The firm backs up its electronic records daily by use of an outside vendor, Network and Software Solutions, of New York. These back-up records are maintained at an independent location where the servers are located and maintained.
In the event of an internal or external SBD that causes the loss of our paper records, we will physically recover them from our back-up site. If our primary site is inoperable, we will continue operations from our back-up site or an alternate location. For the loss of electronic records, we will either physically recover the storage media or electronically recover data from our back-up site, or, if our primary site is inoperable, continue operations from our back-up site or an alternate location.
Rule: FINRA Rule 4370(c)(1).
Financial and Operational Assessments
In the event of an SBD, we will immediately identify what means will permit us to communicate with our customers, employees, critical business constituents, critical banks, critical counter-parties and regulators. Although the effects of an SBD will determine the means of alternative communication, the communications options we will employ will include our web site, telephone voice mail, e-mail etc. In addition, we will retrieve our key activity records as described in the section above, Data Back-Up and Recovery (Hard Copy and Electronic).
Rules: FINRA Rules 4370(c)(3),(c)(4), (c)(5), (c)(7), (c)(9 & (g)(2)).
Financial and Credit Risk
In the event of an SBD, we will determine the value and liquidity of our investments and other assets to evaluate our ability to continue to fund our operations and remain in capital compliance. We will contact our clearing firms, critical banks and investors to apprise them of our financial status. If we determine that we may be unable to meet our obligations to those counter-parties or otherwise continue to fund our operations, we will request additional financing from our bank or other credit sources to fulfill our obligations to our customers and clients. If we cannot remedy a capital deficiency, we will file appropriate notices with our regulators and immediately take appropriate steps. .
Rules: FINRA Rules 4370(c)(3), (c)(8) & (g)(2).
Mission Critical Systems
Our firm’s “mission critical systems” are those that ensure prompt and accurate processing of securities transactions, including order taking, entry, execution, comparison, allocation, clearance and settlement of securities transactions, the maintenance of customer accounts, access to customer accounts and the delivery of funds and securities. More specifically, these systems include;
Order taking/order entry
Trading – equity & fixed income
Clearance & settlement
Access to client accounts
We have primary responsibility for establishing and maintaining our business relationships with our customers and have sole responsibility for our mission critical functions of order taking and entry and execution. Our clearing firms provide, through contract, the execution, comparison, allocation, clearance and settlement of securities transactions, maintenance of customer accounts, access to customer accounts and the delivery of funds and securities.
Our clearing firms’ contract provides that our clearing firms will maintain a business continuity plan and the capacity to execute that plan. Our clearing firms represents that they will advise us of any material changes to their plan that might affect our ability to maintain our business. In the event our clearing firms execute their plan, they represent that they will notify us of such execution and provide us equal access to services as their other customers. If we reasonably determine that our clearing firms have not or cannot put their plan in place quickly enough to meet our needs, or are otherwise unable to provide access to such services, our clearing firms represent that they will assist us in seeking services from an alternative source.
Our clearing firms represents that they back up our records at a remote site. Our clearing firms represents that they operate a back-up operating facility in a geographically separate area with the capability to conduct the same volume of business as their primary site. Our clearing firms have also confirmed the effectiveness of their back-up arrangements to recover from a wide scale disruption by testing, and they have confirmed that it tests its back-up arrangements.
Recovery-time objectives provide concrete goals to plan for and test against. They are not, however, hard and fast deadlines that must be met in every emergency situation, and various external factors surrounding a disruption, such as time of day, scope of disruption and status of critical infrastructure—particularly telecommunications—can affect actual recovery times. Recovery refers to the restoration of clearing and settlement activities after a wide-scale disruption; resumption refers to the capacity to accept and process new transactions and payments after a wide-scale disruption. Our clearing firms have the following SBD recovery time and resumption objectives: virtual continuous access to all services.
Richard Onesto will periodically review our clearing firm’s capabilities to perform the mission critical functions the clearing firm has contracted to perform for our firm.
Our Firm’s Mission Critical Systems
Currently, our firm receives orders from customers via telephone, fax mail and in person visits by the customer. During an SBD, either internal or external, we will continue to take orders through any of these methods that are available and reliable, and in addition, as communications permit, we will inform our customers when communications become available to tell them what alternatives they have to send their orders to us. Customers will be informed of alternatives by telephone, fax, e-mail and our web-site. If necessary we will advise our customers to place orders directly with our clearing firms at Sterne Agee Clearing and Legent Clearing.
Currently, our firm enters orders by recording them on paper and electronically and sending them to other market makers and our clearing firms electronically or telephonically.
In the event of an internal SBD, we will enter and send records to other market makers and our clearing firms by the fastest alternative means available, which include telephone, fax and e-mail. In the event of an external SBD, we will maintain the order in electronic or paper format, and deliver the order to the clearing firms by the fastest means available when it resumes operations. In addition, during an internal SBD, we may need to refer our customers to deal directly with our clearing firms for order entry.
Mission Critical Systems Provided by Our Clearing Firms
Our firm relies, by contract, on our clearing firms to provide order execution, order comparison, order allocation, customer account maintenance and/or access and delivery of funds and securities.
Rules: FINRA Rules 3510(c)(2) & (g)(1).
Alternate Communications Between the Firm and Customers, Employees, and Regulators
We now communicate with our customers using the telephone, e-mail, our web-site fax, U.S. mail and in person visits at our firms’ locations. In the event of an SBD, we will assess which means of communication are still available to us, and use the means closest in speed and form (written or oral) to the means that we have used in the past to communicate with the other party. For example, if we have communicated with a party by email but the Internet is unavailable, we will call them on the telephone and follow up where a record is needed with paper copy in the U.S. mail.
Rule: FINRA Rule 4370(c)(4).
We now communicate with our employees using the telephone e-mail and in person. In the event of an SBD, we will assess which means of communication are still available to us, and use the means closest in speed and form (written or oral) to the means that we have used in the past to communicate with the other party. We will also employ a call tree so that senior management can reach all employees quickly during an SBD. The call tree includes all staff home and office phone numbers. The persons to invoke the use of the calling tree are Bruce Meyers and Richard Onesto.
Rule: FINRA Rule 4370(c)(5).
We are currently members of FINRA. We communicate with our regulators using telephone, e-mail, U.S. mail and in person In the event of an SBD, we will assess which means of communication are still available to us, and use the means closest in speed and form (written or oral) to the means that we have used in the past to communicate with the other party.
Rule: FINRA Rule 4370(c)(9).
Critical Business Constituents, Banks, and Counter-Parties
We have contacted our critical business constituents (businesses with which we have an ongoing commercial relationship in support of our operating activities, such as vendors providing us critical services), and determined the extent to which we can continue our business relationship with them in light of the internal or external SBD. We will quickly establish alternative arrangements if a business constituent can no longer provide the needed goods or services when we need them because of a SBD to them or our firm. Our major suppliers are: Broadview Communications, Global Relay and Bon Trade Solutions.
Rules: FINRA Rule 4370(c)(7).
We have contacted our banks and lenders to determine if they can continue to provide the financing that we will need in light of the internal or external SBD. The bank maintaining our operating account is: Bank of America, 150 Broadway, New York, NY 10038. The phone # is 212-406-0475. The banks maintaining our Proprietary Account of Introducing Brokers/Dealers (PAIB account) are our clearing firms of Sterne Agee Clearing and Legent Clearing. If our banks and other lenders are unable to provide the financing, we will seek alternative financing immediately.
Rules: FINRA Rule 4370(c)(7).
We have contacted our critical counter-parties, such as other broker-dealers or institutional customers, to determine if we will be able to carry out our transactions with them in light of the internal or external SBD. Where the transactions cannot be completed, we will work with our clearing firms or contact those counterparties directly to make alternative arrangements to complete those transactions as soon as possible.
Rules: FINRA Rule 4370(c)(7).
Our firm is subject to regulation by the Securities and Exchange Commission, FINRA AND various state securities regulators. We now file reports with our regulators using paper copies in the U.S. mail, and electronically using fax, email and the Internet. In the event of an SBD, we will check with the SEC, FINRA and other regulators to determine which means of filing are still available to us, and use the means closest in speed and form (written or oral) to our previous filing method. In the event that we cannot contact our regulators, we will continue to file required reports using the communication means available to us.
Rule: FINRA Rule 4370(c)(8).
Disclosure of Business Continuity Plan
Attached is our written BCP disclosure statement we provide customers at account opening. We also post the disclosure statement on our web-site, HYPERLINK "http://www.meyersassociateslp.com" www.meyersassociateslp.com, and we will mail it to customers upon request.
Rule: FINRA Rule 4370(e).
Updates and Annual Review
Our firm will update this plan whenever we have a material change to our operations, structure, business or location or to those of our clearing firms. In addition, our firm will review this BCP annually, in December of each year, to modify it for any changes in our operations, structure, business or location or those of our clearing firms.
Rule: FINRA Rule 4370(b).
Senior Manager Approval
I have approved this Business Continuity Plan as reasonably designed to enable our firm to meet its obligations to customers in the event of an SBD.
Rule: FINRA Rule 4370(d).