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BUSINESS CONTINUITY PLAN This document addresses the EKN Financial Services, Inc. continuity plan. The purpose of this plan is to ensure the Firm's uninterrupted operations and/or restoration of its business and operations in the most efficient and timely manner in case of an internal or external Significant Business Disruption (“SBD”). Firm Policy Our Firm's policy is to respond to a Significant Business Disruption by safeguarding employees' lives and the Firm's 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. Significant Business Disruptions Plan Location and Access Business Description Our Firm conducts business primarily in the US equities markets and provides investment-banking services. We are an introducing firm. We do not hold customer funds or securities. Our clearing firm maintains customers' accounts and transactions. Our Firm services retail customers and Legent Clearing, LLC. is our clearing agent. Office Locations A. Woodbury Office – Headquarters Our Woodbury office is located at: B. New York office Our New York office is located at: Alternative Physical Location(s) of Employees In the event of an SBD, we will continue operations at an alternate working location. The Firm has provided access for some employees to access the Net Exchange system from locations outside of the office. Therefore these individuals may operate from their homes if necessary. Customers' Access to Funds and Securities Our Firm does not maintain custody of customers' funds or securities. In the event of an internal or external SBD, our registered employees will take customer orders or instructions over any available method. Also, our Firm will post a notice on our website stating that customers may execute any kind of transaction by contacting us via our main line, 800 line, cell phone or, if necessary, by calling directly to our clearing firm. Data Back-Up and Recovery (Hard Copy and Electronic) Our Clearing Firm maintains a copy of all relevant documents in their offsite storage facility. On a daily basis, They backup all electronic working files to an external storage facility. We have access to those records and files at any given time, so in the event of an internal or external SBD we can always recover our records. Financial and Operational Assessments A. Operational Risk In the event of an SBD, we will immediately identify and use any methods that permit us to communicate with our customers, employees, business constituents, banks and regulators. B. 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. Mission Critical Systems Our Firm's "mission critical systems" are those that ensure prompt and accurate processing of securities transactions and the maintenance of customer accounts. We have primary responsibility for maintaining our relationships with customers. Our clearing firm, Legent Clearing LLC provides the execution, comparison, allocation, clearance and settlement of securities transactions and the maintenance of customer accounts. Our clearing firm contract requires our clearing firm: to maintain a business continuity plan and the capacity to execute it. Our clearing firm represents that it backs up all records. Communications between the Firm, Customers, Employees, and Regulators In the event of an SBD, we will use the means comparable in speed and form to the means that we have used in the past to communicate with our customers, employees and regulators. We will always keep all parties informed with status reports on the situation of the business. Critical Business Constituents and Banks A. Business Constituents We have contacted our critical business constituents and determined the extent to which we can continue our business relationship with them in the event of an internal or external SBD. We will quickly establish alternative arrangements if a business constituent can no longer provide the needed goods or services. B. Banks We have contacted our banks and lenders to ensure they maintain a BCP and have the capacity to deploy it in the event of an internal or external SBD Regulatory Reporting Our Firm is subject to regulation by: FINRA and the SEC. In the event of an SBD, we will verify with these institutions the means of filing still available to us. Disclosure of Business Continuity Plan We include a copy of this summary to customers in the Firm's account opening documentation package. We also have posted this summary on our website (www.eknstock.com). The summary is mailed to customers upon request. In the event of a disruption all customers should refer to our website for instructions and direction. Updates and Annual Review Our Firm will update this plan whenever there is a material change to our operations, structure, business or location or those of our clearing firm. In addition, our Firm will review this BCP periodically. SIPC Should the Firm be unable to recover from a disaster, the Firm will follow SIPC liquidation procedures. For any questions regarding this Business Continuance Plan, please contact our compliance department at (516) 396-1234. |
OUR FIRM
PRIVATE CLIENT SERVICES INVESTMENT BANKING