Business Continuity Plan
BCP SUMMARY DISCLOSURE STATEMENT
The following is a summary of the Business Continuity Plan (BCP) for Wellington Shields & Co. LLC (“WSC”). In compliance with rules set forth by the Financial Industry Regulatory Authority (FINRA), the BCP is intended to summarize WSC’s efforts to mitigate risks associated with unexpected business disruptions. 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 the firm’s books and records, and allowing our customers to transact business.
We have categorized “SBD” events into two classes – internal and external events. Internal SBDs affect only our firm’s ability to communicate and do business, such as a systems problem affecting our firm or 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 WSC ever experience an internal SBD where we would not be able to access our New York location, we maintain additional offices outside the NYC area. These branch offices have data and voice communication lines that will allow us to conduct business in a near normal manner. In the event of a SBD we anticipate being operational at these facilities within as little as two hours, and in any event, no later than the next business day. General information regarding our intended responses would be communicated to clients via the fastest available means, including phone, cellular phone, e-mail, or our website.
Should WSC ever experience an external SBD, such as a terrorist attack, a city flood, or a wide-scale regional disruption that would prevent the operation of the securities markets or a number of firms, our intent would be to operate from any branch offices or residences of officers and key employees not affected by the disruption. WSC uses the services of a number of critical vendors, and our ability to operate subject to an external SBD would depend upon the availability of our vendors or alternate vendors. These providers, such as our clearing agent and order management systems, have robust BCP plans and would expect to continue operations via the Internet. It is the intent of WSC to continue operations during an external SBD. We anticipate recovery time from one full business day to as much as one full business week, depending upon the severity of the disruption. Orders and request for funds and securities could be delayed during such a disruption.
As a client of Wellington Shields, we recognize you may need access to your account to sell a position or request a check before we re-establish telephone service. During this time, First Clearing, our clearing firm, will assist you with sell/liquidation orders and provide check disbursements, if needed. If you cannot contact our firm, please call First Clearing for assistance at 877-496-3223.
General information regarding our intended responses would be communicated to clients on the fastest available means, via phone, cellular phone, e-mail, or our website. During a significant business disruption, WSC will re-establish phone contact with our clients as quickly as possible. Clients should check our website at www.wellingtonshields.com for our latest information.
This plan is subject to modification. Any updated summary will be promptly posted on our website at www.wellingtonshields.com. Customers may also obtain an updated hardcopy BCP upon request by contacting us at 212-320-3000.