FINRA Affirms Business Continuity Rule

Following a rule review, FINRA decided to maintain Rule 4370 ("Business Continuity Plans ("BCP") and Emergency Contact Information"). The rule "requires a member firm to create, maintain, review at least annually and update upon any material change, a written BCP identifying procedures relating to an emergency or significant business interruption."

During the rule review, FINRA considered the costs and benefits associated with creating, maintaining, or updating a BCP. Under separate notices, FINRA also solicited feedback on pandemic-related issues concerning remote work and alternative work arrangements. Stakeholders reported that Rule 4370 worked well. FINRA found that "the rule's flexible, non-prescriptive, and risk-based approach has been effective in ensuring firms of all sizes are prepared for potential business disruptions."