Business Continuity Plan
This page provides our clients, and the public, with a summary of Lombard Securities’ Business Continuity Plan in accordance with FINRA regulations. While no summary can fully anticipate each and every business interruption contingency, we will attempt to present an overview of our contingency planning. Lombard’s goal is to resume operations as quickly as possible in the event of a significant business disruption.
Lombard’s plan anticipates two kinds of significant business disruptions: those which are external, such as a terrorist attack or other regional or national disruption that could prevent the operation of some or all of the securities markets and which could affect the performance of a substantial number of businesses, and those which are internal, which would affect only Lombard’s ability to communicate and do business, such as a flood or fire directly affecting the firm’s main office.
Since Lombard is a fully disclosed broker-dealer, it does not hold customer funds or securities, and does not execute securities transactions. Lombard accepts and enters orders on behalf of its clients into a computer system that is hosted and maintained by Lombard’s correspondent firm, Southwest Securities, Inc., a New York Stock Exchange Member. Our reaction to any external event, therefore, would be highly dependent upon whether the event, or events, also affected the operations of our correspondent clearing firm. Our correspondent (Hilltop Securities, Inc.) has its own Business Continuity Plan.
In the event of an internal disruption, Lombard employees will work from their residences or from the residence of one of the firm’s executive officers, or from our suburban Baltimore office in Towson, MD, depending on their function. If phone service is unavailable in the area of the main office, we anticipate that the firm’s brokers would still be able to use the Internet based computer system of our correspondent, or its 800 telephone number, to enter orders and carry out other instructions of customers. In the event that our correspondent’s computer system is down or not in service, a direct customer service telephone line is available for brokers to enter orders and make account information inquiries.
Lombard maintains most of its hard copy and electronic books and records at its main office at 1820 Lancaster Street, Baltimore, Maryland. Transaction-based records and client account information is located on both our correspondent’s computer system and in hard copy at Lombard’s offices. Customer account information is also maintained in Lombard’s field offices. In the event of an internal business disruption affecting Lombard’s main office, the firm’s employees will use available resources of our clearing firm to service customers.
This summary provides only an overview of a generally more detailed response to various significant business disruption events. Due to the inherent uncertainties involved, there can be no assurance given as to whether Lombard’s efforts would be successful.
Please check this page for updates of our Business Continuity Plan summary.