Disclosures

Business Continuity

Business Continuity Disclosure Statement

GARP Research & Securities Company has implemented a Business Continuity Plan (BCP) to comply with NASD Rule 3510. In the event of a significant business disruption, we have written contingency plans that will enable us to continue our operations. Since the timing and impact of disasters and disruptions is unpredictable, we will have to be flexible in responding to actual events as they occur. With that in mind, we are providing you with this information on our business continuity plan. Areas covered in our BCP include, but are not limited to the following:

  • Alternative physical location(s) of employees
  • Data back-up and recovery (Hard copy & Electronic)
  • Financial and Operational assessments
  • Identification of mission critical systems
  • Key contact information
  • Alternate communications between our employees and our customers
  • Identification of critical business constituents, banks, and counter-parties

If after a significant business disruption you cannot contact us as you usually do at (410) 764-1300, you should call our alternative number (443) 621-9000 or go to our web site at www.garpresearch.com. If you cannot access us through either of those means, you should contact our clearing firm, Bear Stearns Securities Corp. at (347) 643-4927 for liquidating orders, check and wire requests, and ACAT transfers.

Our firm is an introducing firm and does not perform any type of clearing function for itself or others. Furthermore, we do not hold customer funds or securities. Our clearing firm, Bear Stearns Securities Corp, is responsible for order entry, execution, allocation and the maintenance of customer accounts, delivery of funds and securities, and access to customer accounts. Bear Stearns backs up its important records in a geographically separate area. While every emergency situation poses unique problems based on external factors, such as time of day and the severity of the disruption, we have been advised by our clearing firm that its objective is to restore its own operations and be able to complete existing transactions and accept new transactions and payments within 4-12 hours and resumption time within the same day Your orders and requests for funds and securities could be delayed during this period.

Our clearing firm contract provides that Bear Stearns Securities Corp will maintain a business continuity plan and the capacity to execute that plan. If we reasonably determine that our clearing firm has not or cannot put its plan in place quickly enough to meet our needs, or is otherwise unable to provide access to such services, our clearing firm represents that it will assist us in seeking services from an alternative source.

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.

Significant business disruptions can vary in their scope, such as only our firm, a single building housing our firm, the business district where our firm is located, the city where we are located, or the whole region. Within each of these areas, the severity of the disruption can also vary from minimal to severe. In a disruption to only our firm or a building housing our firm, we will transfer our operations to a local site when needed and expect to recover and resume business within 4-12 hours. In a disruption affecting our business district, city, or region, we will transfer our operations to a site outside of the affected area, and recover and resume business within 24 hours. In either situation, we plan to continue in business, transfer operations to our clearing firm if necessary, and notify you through our web site www.garpresearch.com or our customer emergency number, (443) 621-9000 how to contact us. If the significant business disruption is so severe that it prevents us from remaining in business, we will assure our customers’ prompt access to their funds and securities.

GARP Research & Securities will maintain copies of the BCP and conduct annual reviews, or update in the event of a material change. A disclosure statement will be posted on our Web site: www.garpresearch.com. Copies are also available upon request by contacting Bryant Boston at 410-318-5018.