santander securities, llcpuertorico.santandersecurities.com/pdf/businesscontinuityplannning.pdf ·...
TRANSCRIPT
Santander Securities, LLC BUSINESS CONTINUITY PLAN PROGRAM
April, 2016
Business Continuity Plan (BCP)
Table of Contents
I. Introduction 4
II. Emergency Contact Person 4
III. Firm Policy 5
A. Significant Business Disruptions (SBD) 5
B. Disaster Recovery Contingency Plan 5
C. Approval and Execution Authority 5
D. Plan Location and Access 6
E. Support, Resources and Back-up 6
IV. Business Description 7
V. Office Locations 7
VI. Alternative Physical Location(s) of Employees 8
VII. Customers’ access to Funds and Securities 9
VIII. Data Back-up and Recovery (Hard Copy and Electronic) 10
IX. Financial and Operational Assessments 11
A. Operational Risk 11
B. Financial and Credit Risk 11
X. Mission Critical Systems 11
A. Our Firm’s Mission Critical Systems 13
B. Mission Critical Systems Provided by our Clearing Firm 14
XI. Alternate Communications between the Firm and Customers,
Employees and Regulators
14
A. Customers 14
B. Employees 14
C. Regulators 15
XII. Critical Business Constituents, Banks and Counter-parties 16
A. Business Constituents 16
B. Banks 16
C. Counter-parties 17
Table of Contents
XIII. Regulatory Reporting 17
XIV. Disclosure of Business Continuity Plan 17
XV. Updates and Annual Review 18
XVI. Senior Manager Approval 18
Exhibits 19
4
Business Continuity Plan (BCP)
I. Introduction
FINRA Rule 4370 requires broker-dealers to create and maintain a written business
continuity plan identifying procedures relating to an emergency or significant business
disruption. Such procedures must be reasonably designed to enable the broker-dealer to
meet its existing obligations to customers. In addition, such procedures must address the
member's existing relationships with other broker-dealers and counter-parties.
The Business Continuity Plan (“BCP”) outlined in this document describes the steps
Santander Securities LLC (“SSLLC” or the “Firm”) will take to recover its critical
business functions and systems in the event of a significant business disruption (“SBD”)
as well as provide procedures for response and recovery in the event of a SBD. The BCP
covers its operations in the Northeast Region (“NRD”), Puerto Rico, and Miami.
SSLLC’s BCP plan includes the following elements:
Data back-up and recovery (hard copy and electronic);
All Mission critical systems;
Financial and operational assessments;
Alternate communication between customers and SSLLC;
Alternate communication between SSLLC and its employees;
Alternate physical locations of employees;
Critical business constituent, bank, and counter-party impact;
Regulatory reporting;
Communications with regulators; and
How SSLLC will assure customers’ prompt access to their funds and securities in
the event that SSLLC determines that it is unable to continue its business.
II. Emergency Contact Persons
SSLLC’s Executive Representative, Fernando Batlle, President and CEO and Mark
Pinocci, Director of Risk, are designated as SSLLC’s emergency contact persons. There
contact information is noted below:
Fernando Batlle, 75 State Street, 617-346-7227 (office), 617-615-5671 (cellular)
Mark Pinocci, 2 Morrissey Blvd., 617-474-5425 (office), 617-480-2588 (cellular)
SSLLC will provide FINRA with the contact information via the CRD system for the
emergency contact persons named above. The Licensing & Registration Department will
promptly notify FINRA via CRD of changes to the information noted above (no later than 30
days following the change). Annually, the Licensing & Registration Department will review
5
the Firm’s emergency contact information in CRD to verify the accuracy, and if necessary,
update this information within 17 business days after the end of each calendar year.
III. Firm Policy
SSLLC’s policy is to respond to a SBD by safeguarding employees’ lives and Firm 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. In the event that SSLLC determines it is unable to continue its business it will
assure customers prompt access to their funds and securities.
A. Significant Business Disruptions (SBDs)
SSLLC’s plan anticipates two kinds of SBDs, internal and external:
Internal SBDs affect only our firm’s ability to communicate and/or do
business, such as a fire in one of our buildings.
External SBDs prevent the operation of the securities markets or a number of
firms, such as a terrorist attack, a city flood, snow storm or hurricane, or a
wide-scale, regional disruption, power outage, etc. Our response to an
external SBD relies more heavily on other organizations and systems,
especially on the capabilities of our clearing firm, Pershing LLC (“Pershing”).
B. Disaster Recovery Contingency Plan
SSLLC will coordinate with Santander Puerto Rico (“SPR”), Banco Santander
International (“BSI”), and Santander Bank N.A. (“SBNA”), so that SSLLC’
activities in Puerto Rico, Miami and the NRD are supported in their respective
Disaster Recovery Contingency Plans (“DRCP”), to suffice those areas where a
SBD is beyond the scope of the Firm’s BCP.
C. Approval and Execution Authority
The Director of Risk has been granted the authority to approve and for
conducting the required annual review. The Chief Operating Officer (“COO”)
has the authority to execute this BCP.
In the event of an SBD, the Director of Risk will contact SSLLC’s BCP
Response Team by either conference call, email, or whatever means are still
available to discuss the SBD. The BCP Response Team will meet to discuss the
SBD and make a decision to initiate the BCP, if necessary.
The BCP Response Team will be made up of the following individuals:
6
President & CEO
Director of Risk
Director of Product
Chief Compliance Officer
Chief Operating Officer
Managing Director Puerto Rico
Director of Sales NRD
Branch Manager, Miami
Chief Financial Officer
D. Plan Location and Access
SSLLC will maintain copies of its BCP plan and the annual reviews, and the
changes that have been made to it for inspection. An electronic copy of our plan is
located on our local servers (BSPR and SSLLC) and in external repository
company, TDATA. In addition, SSLLC will post its BCP on its intranet site so
that is available to all employees and registered persons.
E. Support, resources and back-up
SSLLC’s Puerto Rico Division activities are supported from its office in San Juan,
Puerto Rico, where Operations, Compliance, Finance, Retail Sales and other
functions are located. In case of a SBD in this location, immediate support will be
provided from the Firm’s offices in Dorchester, MA, while we activate our
alternate location to resume contingency support services.
SSLLC’s NRD business is supported from its offices in Dorchester, MA, where
Operations, Compliance, Retail Sales Support and other functions are located. In
case of a SBD in this location, immediate support will be provided from the
Firm’s office in San Juan, Puerto Rico, while we activate our alternate location to
resume contingency support services.
SSLLC’s Miami business is supported from its Miami office. In the case of an
SBD in this location, immediate support will be provided from the Firm’s office in
San Juan, Puerto Rico, while we active the alternate location to resume
contingency support services.
Pershing is SSLLC’s clearing firm and provider of NetX360, a mission critical
system. The Pershing contract states that they will maintain a business continuity
plan and have the capacity to execute that plan; represents that it will advise
SSLLC of any material changes to its plan that might affect its ability to support
SSLLC’s business. In the event Pershing executes its plan, it represents that it will
notify SSLLC of such execution and provides SSLLC equal access to services as
its other customers. If SSLLC reasonably determines that Pershing has not or
cannot put its plan in place quickly enough to meet SSLLC’s needs, or is otherwise
7
unable to provide access to such services, Pershing represents that it will assist us
in seeking services from an alternative source.
Pershing represents that it backs up SSLLC’s records at a remote site, that it
operates a back-up operating facility in a geographically separate area with the
capability to conduct the same volume of business as its primary site, and has also
confirmed the effectiveness of its back-up arrangements to recover from a wide
scale disruption by testing annually and it has confirmed that it tests its backup
arrangements in four (4) hours.
At minimum annually, SSLLC’s COO shall review Pershing’s BCP to determine
if there are any gaps associated with it. If gaps are identified the COO will
immediately raise them to senior management (CEO and Director of Risk) so that
appropriate action can be taken. In addition, the COO will review Pershing’s
semi-annual Disaster Recovery Testing Attestation (“Attestations”). Refer to
Exhibit A for Pershing’s BCP.
IV. Business Description
SSLLC is an introducing firm and does not perform any type of clearing function for itself or
others. Specifically, SSLLC is a full service broker-dealer offering securities (e.g., Fixed
income, equities, mutual funds, variable annuities, and advisory products) and insurance
products (e.g., Fixed annuities and life insurance) to retail and institutional clients in the
United States and Puerto Rico. In addition, SSLLC also provides limited investment banking
services through its participation in the underwriting of Puerto Rico municipal bonds and
investment banking advisory services. SSLLC’s primary business is to provide customers
with investment and insurance solutions that are consistent with their risk profile and
investment goals/needs. Furthermore, SSLLC does not hold customer funds or securities.
As noted above, SSLLC’s clearing firm is Pershing. Pershing’s contact information is noted in
the table below:
Pershing, LLC
(Main Contact Information)
PO BOX 2065
Jersey City, NJ 07303
www.pershing.com
T: (201) 413-3635
F: (201) 413-5368
Alternate T: (213) 624-6100,
Ext. 500 (recorded instructions)
Pershing Main Contact Person Kenneth Vinci, Director
T: (201) 413-4144
Pershing Alternate Contact
Person
Jennifer Elvin
Evangeliou, Account
Manager
T: (201) 761-5051
V. Office Locations
A. Office Location #1 (OSJ location) is located at 75 State Street, Boston, MA 02109.
The main office number is (617) 346-7277 Employees may travel to this office by
means of car, train, subway, bus, or foot. SSLLC’s CEO and Chief Legal Officer are
8
housed at this location.
B. Office Location #2 (OSJ location) is 2 Morrissey Boulevard, Dorchester, MA,
02125. The main telephone number is (617) 379-4226. Employees may travel to that
office by means of car, train, subway, bus, or foot. SSLLC’s senior management team
is housed at this location, which includes the Chief Compliance Officer, Chief
Operating Officer, Head of Product, and Director of Risk. Additionally, the following
activities are performed at this location: 1) review and approval of securities and
insurance trades; 2) compliance activities (e.g., review and approval of
advertising/sales material, email surveillance, trade surveillance, & licensing &
registration); 3) operational activities (e.g., process ACATs, money movements, etc.);
4) retail sales support and 5) commission and incentives functions.
C. Office Location # 3 (OSJ location) is 207 Ponce de Leon Ave, 4th
Floor, San Juan,
PR 00917-1818. The main number is (787) 759-5330. Employees may travel to this
office by means of car, train, bus, or foot. SSLLC engages in these activities at this
location: 1) open new client accounts: 2) execute client orders; 3) investment banking;
4) operational activities (e.g., cashiering, wire requests, ACATs, etc.); 5) supervisory
activities; 5) trading/capital markets; 6) finance and accounting functions; and 7)
compliance related functions.
D. Office Location # 5 (OSJ location) is 1401 Brickell Ave., Suite 100, Miami, FL
33131. The main telephone number is 305-539-5641. SSLLC engages in these
activities at this location: 1) open new client accounts; 2) execute client orders; and 3)
operational activities.
E. Office Locations #6 is the registered branch offices in New York, New Jersey,
Pennsylvania, Connecticut, Rhode Island, Massachusetts, and New Hampshire.
SSLLC engages in the sale of securities or insurance products in these locations by a
team of registered persons. Refer to Exhibit B for the list of SSLLC’s branch office
locations.
VI. Alternative Physical Location(s) of Employees
Establishment of alternate sites is part of the recovery efforts to mitigate
interruptions due to events that prevent access to employees to regular workings
sites. In the event of an SBD in Puerto Rico, location #2 (Dorchester) will promptly
support the continuity of the business. Our Puerto Rico staff will be relocated from
the affected offices to the nearest of our unaffected office locations or to Santander
Puerto Rico recovery locations. Santander Puerto Rico has the following alternate
recovery sites for relocating its personnel in case of need:
ATENTO Recovery Site, Caguax Ind. Park, Caguas, Puerto Rico, 00925
Datacenter Training Rooms, Arterial Hostos, Hato Rey, Puerto Rico
00917
9
SSLLC’s Main Building Hato Rey Conference Room, 4th
Floor, Hato Rey,
Puerto Rico 00917
Due to business infrastructure needs, the following identified applications / services
will be recovered if needed in the following designated alternate sites:
a. Bloomberg
- Personnel from Santander Main Building in Hato Rey using this service
will be recovered in Arterial Hostos, Hato Rey, Puerto Rico.
- Bloomberg terminals are also located in the Miami, FL and Dorchester, MA
offices and provide additional back-up capabilities.
b. Fedline Services
- Personnel from Back Office in Santander Main Building in Hato Rey using
this service will be recovered at the Datacenter, Arterial Hostos Building in
Hato Rey, Puerto Rico.
- Personnel from Operations - Specialized Services in the Datacenter,
Arterial Hostos Building in Hato Rey, Puerto Rico using this service will be
recovered at Santander Main Building in Hato Rey.
In the event of an SBD in Dorchester, locations #s 3 & 4 in Puerto Rico will
promptly support the continuity of the business. SSLLC’s Boston staff will be
relocated from the affected offices to SBNA offices at 75, State Street, Boston
(MA) if available, or to SBNA’s Disaster Recovery Site in 1 Santander Way, East
Providence, Rhode Island.
In the case of an SBD affecting a number of registered branches, SSLLC will
follow SBNA’s BCP and simultaneously relocate its registered personnel to the
nearest available registered branch.
VII. Customers’ Access to Funds and Securities
SSLLC does not hold customers’ funds or securities. Customer funds and securities are
held with our clearing firm, Pershing or the insurance carriers SSLLC has entered into a
selling agreement to sell their products.
In the event of an internal or external SBD, SSLLC will have the ability to contact
customers through multiple avenues. Similarly, customers will be able to access their
funds or securities through multiple sources. First, if phone service is available, SSLLC’s
registered persons will be able to respond to customer questions, inquiries, and facilitate
investments or instructions on behalf of the customer by processing the transaction via
the NetX360 platform or contacting Pershing directly on behalf of the customer. Second,
if web access is available, SSLLC will contact its clients by posting a message on its
10
website with instructions on how to access funds, and/or effectuate transactions. Third,
clients will have direct access to the insurance carriers to conduct business of necessary
via the insurance carrier’s customer service number or through their respective web sites.
Refer to Exhibit C for list of insurance carriers.
If SIPC determines that we are unable to meet our obligations to our customers or if our
liabilities exceed our assets in violation of Securities Exchange Act Rule 15c3-1, SIPC
may seek to appoint a trustee to disburse our assets to customers. SSLLC will assist
SIPC and the trustee by providing its books and records identifying customer accounts
subject to SIPC regulation.
VIII. Data Back-Up and Recovery (Hard Copy and Electronic)
SSLLC maintains its books and records in both hard copy and electronic format.
Hard Copy Records
For PR activities, hard copy books and records are maintained at Location #1 at 207
Ponce de Leon Ave, San Juan, PR 00917. Rafael Colon Ascar, Managing Director, at
(787) 200-1720 is responsible for the maintenance of the Firm’s business records. In
addition, operations finance and compliance records are also maintained at this
location. Ralph Roman, Director of Operations (787)759-5375, Ivan Castaner,
Compliance Manager, at (787) 281-3527 and Ana del Pilar Rivera, Controller, at (787)
281-3503 are responsible for the maintenance of these records.
For NRD activities, hard copy books and records are maintained at 2 Morrissey
Boulevard, Dorchester, MA, 02125. Craig Maroney, Operations Manager, at (617) 474-
5707 is responsible for the maintenance of these records.
For Miami activities, hard copy books and records are maintained at 1401 Brickell Ave,
Suite 100, Miami, FL. Jaime Annexy, Branch Manager, at (305) 539-5641 is
responsible for the maintenance of these records.
In the event of an internal or external SBD that causes the loss of our paper records,
SSLLC will physically recover these records from its back-up site. If SSLLC’s primary
site is inoperable, SSLLC will continue operations from its back-up site or an alternate
location. For the loss of electronic records, SSLLC will either physically recover the
storage media or electronically recover data from its back-up site, or, if its primary site
is inoperable, continue operations from our back-up site or an alternate location.
Electronic Records
SSLLC’s primary customer records are maintained electronically in the Pershing’s
NetX360 system (segregated by customer). These records include: new account form,
customer identification documentation, margin agreements, options agreements,
compliance disclosure forms, copies of checks, correspondence, letters of
11
authorizations. As noted in in the Pershing BCP, these records are backed daily by
them.
The Firm’s financial records are maintained electronically on these systems: 1)
ALTAIR (general ledger system); 2) People Soft (Accounts Payable & Fixed Asset
systems); 3) TUTELA (Data Warehouse). These systems enable SSLLC’s to perform
its net capital calculations, FOCUS reporting, and financial statements. SSLLC
maintains copies of the reports generated. These systems are maintained by SPR and
backed up daily to tape. In the event of an SBD, SSLLC will coordinate with SPR to
ensure access to these systems and the Firm’s financial records.
The Firm backs up its electronic records daily by local backup application software.
Locally hosted applications are fully backed up on tapes which are delivered to a third-
party off-site location (for NRD - Iron Mountain, 203 Moonachie Road Moonachie NJ
07074, phone number (201) 807-0100), and for Puerto Rico - International Safe
Deposit, Ave. Roosevelt #1344, Pueblo Viejo, San Juan Puerto Rico).
IX. Financial and Operational Assessments
A. Operational Risk
In the event of an SBD, SSLLC will immediately identify what means will permit it to
communicate with its customers, employees, critical business constituents, critical banks,
critical counter-parties, and regulators. Although the effects of an SBD will determine
the means of alternative communication, the communications options SSLLC will
employ will include its web site, telephone voice mail, secure e-mail, etc. In addition,
SSLLC will retrieve its key activity records as described in the section above, Data
Back-Up and Recovery (Hard Copy and Electronic).
B. Financial and Credit Risk
In the event of an SBD, SSLLC will review its financial health to evaluate its ability to
continue to fund day-to-day operations and remain in capital compliance. SSLLC will
contact Pershing, Santander Holdings USA, Inc., SPR, SBNA, BSI, and clients to
apprise them of our financial status by either email, telephone, posting a notice on the
SSLLC website or by mail. If SSLLC determines that it may be unable to meet its
obligations to those counter-parties or otherwise continue to fund our operations, it will
request additional financing from other credit sources to fulfill its obligations to its
customers and clients. If we cannot remedy a capital deficiency, we will file appropriate
notices with FINRA and the SEC and immediately take appropriate steps
X. Mission Critical Systems
SSLLC’s “mission critical systems” are those that ensure prompt and accurate
processing of securities transactions, including order taking, entry, execution,
12
comparison, allocation, clearance and settlement of securities transactions, the
maintenance of customer accounts, access to customer accounts, and the delivery of
funds and securities. Specifically, these systems include:
o NetX360; System that maintains SSLLC customer account records, positions,
account statements/confirms. In addition, the system is used by SSLLC to place
mutual fund and equity orders for customers and execute customer side fixed
income orders;
o TMC (web-based): Trading system that allows SSLLC’s Trading Desk to
execute street side fixed income trades; and
o Bloomberg: Provides SSLLC’s Trading Desk with access to market prices for
fixed income trades.
SSLLC’s primary responsibility is establishing and maintaining business relationships
with our customers and has sole responsibility for the mission critical functions of order
taking and entry of such orders in the Pershing Platform. Pershing provides, through its
contract, the execution, comparison, allocation, clearance and settlement of securities
transactions, the maintenance of customer accounts, management of confirmations and
account statements, access to customer accounts, and the delivery of funds and
securities.
Pershing provides that will maintain a business continuity plan and the capacity to
execute that plan. Pershing represents that it will advise SSLLC of any material changes
to its plan that might affect its ability to maintain SSLLC’s business and has presented
SSLLC with an executive summary of its plan. In the event Pershing executes its plan, it
represents that it will notify SSLLC of such execution and provides SSLLC equal access
to services as it does to other customers. If SSLLC reasonably determines that Pershing
has not or cannot put its plan in place quickly enough to meet SSLLC’s needs, or is
otherwise unable to provide access to such services, Pershing represents that it will assist
us in seeking services from an alternative source.
Pershing represents that it backs up SSLLC’s records at a remote site. Pershing
represents that it operates a back-up operating facility in a geographically separate area
with the capability to conduct the same volume of business as its primary site. Pershing
has also confirmed the effectiveness of its back-up arrangements to recover from a wide
scale disruption by testing. Testing is a formal full-cycle process that encompasses
scheduled quarterly tests, ad-hoc testing and external exercises that address business,
technology, audit and compliance requirements
Recovery-time objectives provide concrete goals to plan for and test against. They are
not, however, hard and fast deadlines that must be met in every emergency situation, and
various external factors surrounding a disruption, such as time of day, scope of
disruption and status of critical infrastructure—particularly telecommunications—can
affect actual recovery times. Recovery refers to the restoration of clearing and settlement
activities after a wide-scale disruption; resumption refers to the capacity to accept and
process new transactions and payments after a wide-scale disruption. If an incident
13
causes the closing of the primary data center, Pershing will declare a disaster recovery
event and activate its disaster recovery plan. This may result in an outage up to four
hours while Pershing’s mainframe processing is transferred to the alternate data center.
Annually, Operations will review Pershing’s capabilities to perform the mission critical
functions the clearing firm has contracted to perform for SSLLC. Documentation of this
review will be maintained by the COO and be available for review by Risk and/or
Compliance.
A. Our Firm’s Mission Critical Systems
1. Order Taking
SSLLC receives orders from customers through registered representatives or
electronically through the website of Net Exchange Client. During an SBD,
either internal or external, SSLLC will continue to take orders through any of
these methods that are available and reliable with the support of the different
locations, and in addition, as communications permit, SSLLC will inform its
customers when communications become available to tell them what
alternatives they have to send their orders to us. Customers will be informed of
alternatives by phone and internet.
2. Order Entry
SSLLC’ registered representatives enter orders through Pershing’s NetX360
platform (equity and mutual fund orders) and subscribe (annuity orders)
systems or through SSLLC’s trading desk (fixed income only).
In the event of an internal or external SBD, SSLLC will enter and send records to
Pershing from the support locations or, if necessary, by the fastest alternative
means available, which include fax, email, or telephone. In the event of an
external SBD, we will maintain the order in electronic or paper format, and
deliver the order to Pershing by the fastest means available when it resumes
operations. In addition, during an internal SBD, SSLLC may need to refer its
customers directly to Pershing to effect transactions.
3. Order Execution
SSLLC clears through Pershing under a fully disclosed basis. Customer’s mutual
fund and equity orders are executed by Pershing. Customer’s fixed income
trades are executed by SSLLC’s trading desk located in Puerto Rico. In the event
the trading desk is unable to execute fixed income trades due to an SBD, the
Director of Trading will contact Pershing’s trading desks to execute customer’s
fixed income trades.
14
4. Other Services Currently Provided to Customers
In addition to those services listed in this section, SSLLC also processes checks,
accept deposits, and process fund transfers and disbursements. In the event of an
internal SBD, SSLLC can process asset movements in the registered branches.
Alternately, SSLLC can instruct customers to process these transactions directly
with the support of the OSJ offices in Puerto Rico or Dorchester, MA.
In the event of an external SBD, customers can process these transactions by
contacting their financial consultant, who again will be supported by the Main
Offices, or directly through Pershing.
B. Mission Critical Systems Provided by Our Clearing Firm
SSLLC relies, by contract, on Pershing to provide order execution, order
comparison, order allocation, customer account maintenance, delivery of funds
and securities, and access to customer accounts.
The mission critical system which provides SSLLC with the functions noted
above is NetX360.
Pershing has represented to SSLLC, through its BCP, that it can expect service
restoration within 4 Hours regarding NetX360.
XI. Alternate Communications Between the Firm and Customers,
Employees, and Regulators
A. Customers
SSLLC now communicates with its customers via in-person meetings at one of
SSLLC’s registered branch office locations, the telephone, e-mail, SSLLC’s Web
site, fax, and U. S. mail. In the event of an SBD, SSLLC will assess which means of
communication are still available and use the means closest in speed and form
(written or oral) to the means that we have used in the past to communicate with the
other party. For example, if we have communicated with a party by e-mail but the
Internet is unavailable, we will call them on the telephone and follow up where a
record is needed with paper copy in the U. S. mail.
B. Employees
SSLLC now communicates with its employees using the telephone, e-mail, and in
person. In the event of an SBD, SSLLC will access which means of communication
are still available, and use the means closest in speed and form (written or oral) to the
means that we have used in the past to communicate with the other party. We will
also employ a call tree so that senior management can reach all employees quickly
15
during an SBD. The call tree includes all staff home and office phone numbers.
Refer to Exhibit D for SSLLC’s Call Tree.
At least once a year, SSLLC management will perform a Call Tree test to ensure the
call tree process is adequate. These tests will be documented and available for review
upon request by Compliance or Internal Audit area.
The person to invoke use of the call tree is: Fernando Batlle.
Caller Call Recipients
Fernando Batlle Mark Pinocci
Mark Pinocci Rafael Colon Ascar, Luis Roig, Maura Almy, Larry Carter,
Jeff Weiner, Xiomara Corral, Jaime Annexy, and Northeast
National Sales Director
Rafael Colon Ascar John Watson, Gerardo Portela, Rebecca Feliciano, Eduardo
Cases, and Puerto Rico Financial Consultants
Luis Roig Finance & MIS
Lawrence Carter Scott Solod, John Clark, Todd McCoy
Northeast National Sales
Director
Santander Investments NRD Regional Sales Managers,
Santander Investments NRD support staff
Jeff Weiner Product Department
Maura Almy Craig Maroney, Ralph Roman, Brendan Carroll, and Chris
Cheney
John Watson Trading Department
Ralph Román Operations Department Puerto Rico
Rebecca Feliciano Sales Assistants
Scott Solod Ivan Castaner, Mary Diaz, Sarah Currier, and Jack Butler
Todd McCoy AML Department
Jack Butler Principal Review Unit
Sarah Currier Branch Inspection Unit
Gerardo Portela Laura Franceschi
Jaime Annexy Miami office personnel
Craig Maroney Northeast Operations
Brendan Carroll IT Department
NRD Regional Sales Managers NRD Financial Consultants
C. Regulators
SSLLC is registered with the United States Securities & Exchange Commission
(“SEC”), Financial Industry Regulatory Authority (“FINRA”), Municipal Securities
Regulatory Board (“MSRB”), the Office of the Commissioner of Financial
Institutions of Puerto Rico (“OCFI”) and various states securities regulators. SSLLC
will communicate with the aforementioned regulators, if required, using the
telephone, email, fax, U.S. mail, or in person. In the event of an SBD, we will assess
which means of communication are still available to us, and use the means closest in
16
speed and form (written or oral) to the means that we have used in the past to
communicate with the other party. At a minimum, SSLLC will contact these
regulators in the event of an SBD (there contact information is noted in Section XIII
below):
SEC
FINRA
MSRB
OCFI
XII. Critical Business Constituents, Banks, and Counter-Parties
A. Business constituents
SSLLC will contact its critical business constituents (businesses with which we have
an ongoing commercial relationship in support of our operating activities, such as
vendors providing us critical services), and determined the extent to which SSLLC
can continue its business relationship with them in light of the internal or external
SBD. SSLLC will quickly establish alternative arrangements if a business
constituent can no longer provide the needed goods or services when SSLLC needs
them because of a SBD to them or SSLLC or SSLLC has entered into a
supplemental contract with certain critical business constituents to provide such
services. SSLLC’s critical business constituents include:
Constituents’ Name Address Phone Number
Pershing, LLC- Main Office PO BOX 2065
Jersey City, NJ 07303
(201) 413-2000
(201) 413-3635
SSLLC does not anticipate Pershing not being able to provide us with their critical
services as they indicate in their BCP that they can be operational within 4 hours of a
SBD.
B. Banks
SSLLC will contact its banks/lenders to determine if they can continue to provide the
financing that we may need in light of the internal or external SBD. The bank
maintaining SSLLC’s operation account is Banco Santander Puerto Rico, PO Box
362589, San Juan PR 00936-2589, (787) 777-4100. If Banco Santander Puerto Rico
is unable to provide the financing SSLLC will seek alternative financing
immediately from other banks.
17
C. Counter-Parties
SSLLC will contact its critical counter-parties, such as other broker-dealers or
institutional customers, to determine if it will be able to carry out its transactions
with them in light of the internal or external SBD. Where the transactions cannot
be completed, SSLLC will work with Pershing or contact those counter-parties
directly to make alternative arrangements to complete those transactions as soon as
possible. Refer to Exhibit E for list of SSLLC’s approved counterparties.
XIII. Regulatory Reporting
SSLLC is registered with these regulators: SEC, FINRA, MSRB, OCFI and various state
securities divisions. Currently, SSLLC files reports with the aforementioned regulators
via U.S. mail, messenger, or electronically using fax, e-mail, or the internet (FINRA’s
CRD system). In the event of an SBD, SSLLC will check with the regulators to
determine which means of filing are still available, and use the means closest in speed
and form (written or oral) to SSLLC’s previous filing method. In the event that SSLLC
cannot contact its regulators, SSLLC will continue to file required reports using the
communication means that are available.
Name Address Contact Number
OCFI Centro Europa Building,
6th Floor
Santurce, PR 00907
Tel: (787) 723-3131
Fax: (787) 724-4225
FINRA 20 Broad Street, 21st Floor
New York, NY 10005
Tel: (646) 315-8517
Fax: (646) 483-6350
FINRA 5200 Town Center Circle,
Suite 200
Boca Raton, FL 33486
Tel: (561) 416-0277
Fax: (301) 527-4868
MSRB 1900 Duke Street Suite 600
Alexandria, VA 22314
Tel: (703) 797-6600
Fax: (703) 797-6700
SEC 801 Brickell Avenue,
Suite 1800
Miami, FL 33131
Tel: (305) 982-6300
Refer to Exhibit F for state securities divisions’ contact information.
XIV. Disclosure of Business Continuity Plan
SSLLC discloses to its customers how its business continuity plan addresses the
possibility of an SBD and how it plans to respond to such events. SSLLC
provides this disclosure to its customer at account opening (included as part of
the New Account Form). SSLLC also posts the disclosure statement on its Web
site and will mail it to customers upon request.
18
XV. Updates and Annual Review
SSLLC firm will update its BCP whenever there is a material change to its operations,
structure, business or locations. In addition, SSLLC will review this BCP annually to
modify it for any changes in our operations, structure, business, or locations.
XVI. Senior Manager Approval
I have approved this BCP as reasonably designed to enable SSLLC to meet its
obligations to its customers in the event of an SBD.
Signed:
Title:
Date
19
EXHIBITS
Exhibit A – Pershing’s BCP
Pershing LLC Contingency Planning - Exec Summary January 2016 Final.pdf
Exhibit B – SSLLC Branch Office List
2016-04-11 Branch Roster.xlsx
Exhibit C – List of Insurance Carriers
Insurance Carrier Contact List 2015-04-01.xlsx
Exhibit D – SSLLC’s Call Tree
BCP Call Tree 04-2016 Final.pptx
Exhibit E – List of Counterparties
COUNTERPARTY LIST 2016.xlsx
Exhibit F – Contact Information State Securities Divisions
State Securities Divisions Contact Information.pdf