B. Riley FBR, Inc. (“B. Riley FBR”) has a business continuity plan to protect the interests of our clients, shareholders and employees, and to facilitate the recovery of our core businesses in the event of a significant business interruption. This plan outlines core functions and the resources required to conduct them. It also details what we plan to do to recover them in the event of a disaster that affects our ability to function at our main locations.
Our business continuity plan addresses: data backup and recovery; mission critical systems; financial and operational assessments; alternative communications with customers, employees and regulators; alternate physical locations of employees; critical supplier, contractor, bank and counter-party impacts; regulatory reporting; and customer assurance of prompt access to funds and securities if B. Riley FBR becomes unable to continue its business.
B. Riley FBR is an introducing firm and does not perform its own or others’ clearing functions. We do not hold customer’s securities or funds. B. Riley FBR employs National Financial Services LLC (“NFS”) as the clearing agent for its broker-dealer operations. In this capacity, NFS compares, allocates, clears and settles all B. Riley FBR transactions. NFS maintains our customers’ accounts, and in the event of disaster, can grant customers access to them to deliver securities and funds.
NFS has implemented a business continuity plan whose primary objectives are to meet the needs of customers. Each NFS department has developed the capabilities to recover both operations and systems. All continuity plans are designed to account for disruptions of various lengths and scopes, and to ensure that critical functions are recovered to meet their business objectives. Critical business groups operate from multiple sites. Dedicated teams within our technology organizations ensure that critical applications and data have sufficient redundancy and availability to minimize the impact of an event.
In the event of a significant business interruption that prevents us from remaining in business, we will assure our customers’ prompt access to any funds and securities custodied by our clearing agent. In such a catastrophic event, clients are directed to call NFS at (800) 801-9942 to inquire about their holdings and/or place orders.
We intend to communicate with customers about the status of our disruptions through our website or by means of telephonic recordings.
We have posted this disclosure on our website for your reference. If you have any questions or concerns, please contact your B. Riley FBR representative.