Business Continuity
Incapital is a registered broker-dealer and investment banking firm that underwrites and distributes fixed income securities and structured notes through a wide range of broker-dealers, banks, investment advisors and other financial institutions. The firm does not directly conduct business with retail investors. With a diverse range of new issue and secondary market offerings, Incapital specializes in U.S. Agency securities, corporate notes, Certificates of Deposit (CDs), Collateralized Mortgage Obligations (CMOs), municipal bonds, and structured notes and CDs. Incapital also provides resources for financial advisors and investors to create income-producing portfolios and notes linked to a wide range of asset classes
We are committed to safeguarding the interests of our clients in the event of an emergency or significant business disruption and as such this Business Continuity Plan Disclosure (the "BCP") summarizes the firm’s effort to mitigate risks inherent with unforeseen business interruptions. 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 all of the firm’s books and records, and allowing our customers to transact business. This BCP is also intended to comply with the rules promulgated under FINRA, specifically FINRA Rule 4370.
Overview
Incapital maintains multiple facilities (Chicago, IL & Boca Raton, FL) where our trading, sales, operations and information technology infrastructure may reconstitute in the event of a SBD. These facilities are located in various geographic locations, which are far enough apart to diminish risks posed by local disruptions. This separation is a key element of the Firm’s overall business continuity strategy and will allow us to mitigate risks related to specific regional disruptions, disruptions effecting one building, or a city-wide business disruption.
Employee & Client Communications
The safety of our employees is an essential concern. In the event of an emergency or significant business disruption, the Firm will communicate with its employees in several different ways, which may include a combination of general broadcasts and/or direct individual outreach. Alerts and other information, such as office closures and operating hours, may be posted on the Firm’s internal and/or external websites, phone recordings, automated email responses, and the like. Additionally, the Firm’s senior managers will be contacted directly via a prescribed alert process.
In the event of an emergency or significant business disruption, clients may obtain information regarding operating status, order entry alternatives and alternative contact information via the Firm’s website, www.incapital.com or www.incapnet.com ®.
Redundancy of Mission Critical Systems
Incapital has several information technology processing and backup processes that provide redundancy to safeguard firm books & records. The recovery capability for certain of the firm’s mission critical systems is achieved through the use of a sophisticated technology, processes and outside vendors. Our recovery processes is designed for real-time recovery of mission critical systems in the event of many anticipated significant business disruptions. Our recovery time objective for business resumption, including those involving a relocation of personnel or technology, is four (4) hours. This recovery objective may be negatively affected by the unavailability of external resources and circumstances beyond our control.
Incapital operational facilities are equipped for disruption of business and are tested several times per year. Currently, our firm receives orders from clients via telephone, e-mail, Incapnet®, or Bloomberg. During an internal or external business interruption we will take orders through any of these methods that are available and reliable. Again, customers will be informed of alternatives via electronic mail, phone, Incapnet® or Bloomberg messaging. If necessary, we will advise our clients to place orders directly with our clearing firm so designated by the clearing firm. The clearing firm’s contact numbers will be posted on the Firm’s website and/or communicated through any other means reasonably available.
Back-Up Locations
Incapital maintains redundant technology and location that allows for the reconstitution of trading and operations. In the event that one facility fails, we are able to relocate certain personnel and systems to the backup site. The backup site is designed to be fully operational at all times. It is equipped with workstations that have redundant computer network connectivity, telephones, printers, fax machines, and other systems specialty necessary for trading and operations. The functionality of the backup systems and facility is routinely tested pursuant to the Firm’s procedures.
Disclaimer
The Firm’s business continuity strategy is designed to enable us to meet our existing obligations to our clients even in the event of an emergency or significant business disruption. However, as with any business continuity plan, it is not infallible as these events are, by their nature, unpredictable and it is impossible to anticipate every scenario that could cause a business disruption. The Firm’s BCP is subject to change without notice. A summary update of this plan may be requested when applicable.