First Allied Securities, Inc. (First Allied, or the firm) is providing you with this information to inform you of its ability to respond to certain business disruptions. First Allied is a full-service fully disclosed broker/dealer that introduces its accounts on a fully disclosed basis to clearing firms to facilitate its receipt and execution of securities transactions. However, all custody of assets is maintained by their fully disclosed clearing firms, mutual fund transfer agents and insurance carriers.
Consistent with its business continuity plan, First Allied maintains backups of all systems and all data. Using these backups, the firm intends to continue its business in the event of a significant business disruption. Nevertheless, there are some disruptions that may render the firm unable to continue business. Under such circumstances, First Allied will ensure that clients will be able to access their funds and securities within a reasonable time directly from their clearing firms, mutual fund transfer agents and insurance carriers.
To receive up-to-date information during a significant business disruption, clients may call the firm’s emergency phone number 800-403-3413.
The following describes specific disruption events and First Allied’s intended response to these corresponding general business continuation events. However, clients should note that these responses are subject to modification and, depending on the severity of a specific event, First Allied cannot guarantee that it will be able to follow the stated course of action. If these responses are modified, First Allied will post the updated disclosure statement on its website. Alternatively, clients may request the firm send them a copy of the updated disclosure statement by mail, by contacting the firm as follows:
First Allied Securities, Inc.
Attn: Business Continuity Planning
655 W. Broadway, 12th Floor
San Diego, CA 92101
Contact: Dee Ness
A Disruption to a Single Building
This disruption may be caused by physical damage, technology problems, or an inability to have personnel arrive at the office. Because some buildings, such as the corporate office in San Diego, are more critical to the firm’s operations, First Allied’s ability to resume business following a disruption to a specific building depends on the building affected. If the location is non-functional, First Allied has access to duplicative systems and other processes that will be run from a separate building. The firm expects only minimal delays from the transfer of operations. If there is a disruption to the corporate office, First Allied expects that operations could be disrupted for up to two hours.
A Firm-Only Business Disruption
In the event that there is a significant business disruption to the firm’s internal primary systems, First Allied will transfer its operations to its backup facilities. In this process, clients may experience a minor delay in reaching the firm due to increased phone calls, technology delays, or other minor difficulties arising from the transfer of operations. First Allied expects that any delay will be less than two hours. Nevertheless, the unlikely failure of the phone system could result in a delay of up to four hours.
A Business-District, City-Wide, or Regional Disruption
In the event that there is a significant business disruption that affects the business district, city, or region where any of the firm’s primary systems are located, First Allied will transfer its operations to its backup facilities. In the process, clients may experience a minor delay in reaching the firm due to increased phone calls, technology delays, or other minor difficulties arising from the transfer of operations. First Allied expects that any delay will be less than two hours.