Temper of the Times Investor Services, Inc.
Business Continuity Plan (BCP)
Emergency Contact Persons
Our firm’s two emergency contact persons are: Leonard Barenboim, 914-925-0022 ext 108, MOBILE: 917-432-8618, corporate email: email@example.com and Susana Aldas, 914-925-0022 ext 109, MOBILE: 973-650-2767, corporate email: firstname.lastname@example.org. These names will be updated in the event of a material change, and our Executive Representative will review them for any changes within 2 weeks of the end of each quarter.
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. In the event that we determine we are unable to continue our business, we will assure our customers as to the status of their funds at our bank and their securities in transfer and/or at transfer agents.
Significant Business Disruptions (SBDs)
Our plan recognizes two kinds of SBDs, internal and external. Internal SBDs affect only our firm’s ability to communicate and do business, such as a fire in our building. External SBDs prevent the operation of the securities markets or a number of firms, such as a terrorist attack, a city flood, or a wide-scale regional disruption. Our response to an external SBD relies more heavily on other organizations and systems.
Approval and Execution Authority
Leonard Barenboim, President, a registered principal, is responsible for approving the plan and for conducting the required annual review. Leonard Barenboim, President,has the authority to execute this BCP.
Plan Location and Access
Our firm maintains 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 Leonard Barenboim’s computer at C:/Desktop\Gerards Computer\Temper Documents\BCP Plans. It is also available as a PDF file on the internet at http:www.directinvesting.com/About Us\Business Continuity Procedure.
Our Firm has only one office. Our firm business revolves only in equity securities. We only buy equities to enroll customers in DRIP programs and open their accounts at corresponding transfer agents. We never sell equities for our customers. Our firm is self clearing for itself only. Furthermore, we do not hold customer funds or securities. We do not accept orders via telephone. We accept and enter orders when in receipt of funds via checks or money orders, or via receipt of direct bank debit information from a customer as submitted to us through our online order acceptance mode on our website. Customer funds are deposited generally upon receipt and on usually a daily basis into an account at our bank’s local branch. All equity orders during the previous month are executed on or about the 10th of the following month.This purchase is done through our executing broker. We compare and settle these trades at the DTC. On T+3 we start enrolling our customers in the DRIP’s they chose at their respective transfer agents. Our firm services mostly retail customers. We do not engage in any other securities trading activity.
Our one and only office is located at 111 Pleasant Ridge Road, Harrison NY 10528. Its main telephone number is 914-925-0022. Our employees travel to that office by foot, car, train or bus.We engage in order entry at this location and purchase these orders once a month on or about the 10th of each month.
Alternative Physical Location(s) of Employees
In the event of an SBD, we will move our staff from our affected office to an unaffected office location made available to receive our staff. We will move our staff to 886 Patterson Avenue, Staten Island NY 10306. The firm’s telephone number at that location is 718-987-6574 or 917-432-8618.
Customers’ Access to Funds and Securities
Our firm does not maintain custody of customers’ funds or securities. The checks we receive are deposited with our bank, J P Morgan Chase generally on a daily basis. In the event of an internal or external SBD, if telephone service is available, our registered persons will advise customers accordingly of their order status, and if Web access is available, there is access to the customer’s order status at the link provided at www.directinvesting.com. The customer can also call the telephone number at the alternative physical location to get information about his or her status. The firm gives the phone number of the alternative location within this BCP report as listed on our access and trading website www.directinvesting.com and at its alternative web site http://www.temperofthetimes.com, as well as and on its Enrollment Order Forms under the heading Business Continuity Plan.
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.Â We will assist SIPC and the trustee by providing our books and records identifying customer accounts subject to SIPC regulation.
Data Back-Up and Recovery (Hard Copy and Electronic)
Our firm maintains its electronic records at our data base server: managed by Host My Site, 650 Pencader Drive, Newark Delaware 19702, under the database name of directinvesting. The phone number in Delaware is 877-472-6784. Ann Chu, head of technology, 914-925-0022 ext 111 (MOBILE 917-929-9262) is responsible for the maintenance of these records. Our original documents are maintained at our office location in metal cabinets stored in a location physically separate from out office location.
Our firm maintains its original records at its primary location in Harrison, NY. These records are paper copies, etc. Leonard Barenboim, 914-925-0022, President is responsible for the maintenance of these records which are kept in metal cabinets. Our firm does not back up its paper records by copying or taking them to a back-up site. All our important data is maintained on the database server (managed by server intellect database name: directinvesting.). These records are backed up every day on a tape backup.
In the event of an internal or external SBD that causes the loss of our paper records, we will physically recover them from our back-up site. If our primary site is inoperable, we will continue operations from our back-up site at our alternate location. For the loss of electronic records, we will either physically recover the storage media or electronically recover data from our back-up site, or, if our primary site is inoperable, continue operations at our back-up site.
Financial and Operational Assessments
In the event of an SBD, we will immediately identify what means will permit us to communicate with our 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 we will employ will include our Web site, telephone voice mail, secure e-mail, etc. In addition, we will retrieve our key activity records as described in the section above, Data Back-Up and Recovery (Hard Copy and Electronic).
Financial and Credit Risk
In the event of an SBD, we will determine the value and liquidity of our investments and other assets to evaluate our ability to continue to fund our operations and remain in capital compliance. We will contact our critical banks, to apprise them of our financial status. If we determine that we may be unable to meet our obligations to those counter-parties or otherwise continue to fund our operations, we will request additional financing from our bank or other credit sources to fulfill our obligations to our customers and clients. If we cannot remedy a capital deficiency, we will file appropriate notices with our regulators and immediately take the appropriate steps they would require.
Mission Critical Systems
Our firm’s “mission critical systems” are those that ensure prompt and accurate processing of securities transactions, including order taking, entry, execution, comparison, allocation, clearance and settlement of securities transactions. We do not maintain customer accounts with our firm; we enroll customers in DRIP programs and deliver their shares to their respective transfer agents.
We have primary responsibility for establishing and maintaining our business relationships with our customers and provide, the execution, comparison, allocation, clearance and settlement and delivery of securities transactions, (we do not maintain customer accounts).
We maintain a business continuity plan and the capacity to execute that plan.
Currently, our firm receives orders from customers via mail or through our Web site at www.directinvesting.com. During an SBD, either internal or external, we will take orders through any of these methods. We will go to the post office to pick up the mail if it cannot be delivered. In addition, as communications permit, we will inform our customers when communications become available to tell them what alternatives they have to send their orders to us. Customers will be informed of alternatives at the internet site www.directinvesting.com and www.temperofthetimes.com, by e-mail or by a recorded message at our alternative physical location phone 718-987-6574.
The firm enters orders by recording them electronically thru our internal in-house system.We execute customer orders once a month via the internet with our online broker on or about the 10th of each month. The broker has indicated that we can expect continued service as long as their executing systems are functional. In the event that their services are affected, we would seek the services of another online broker who can carry out our trade executions.
We currently execute orders by accessing the internet to our executing broker. This is accomplished by sending an automatically generated order list Excel file to our executing broker, who in return and upon execution of ordered trades sends an executed trades report back to us via internet to e-mail address of Leonard Barenboim at email@example.com. In the event of an internal SBD, we would execute orders through the internet with our executing broker from our alternative physical location. In the event of an external SBD, we would execute orders through the internet of our executing broker from our alternative physical location, or we will transfer execution orders to our executing broker by telephone.
Other Services Currently Provided to Customers
Mission Critical Systems Provided by Our Clearing Firm
Our firm is self clearing through DTCC only.
Alternate Communications between the Firm and Customers, Employees, and Regulators
We now communicate with our customers using the telephone, e-mail, our Web site, fax, U.S. mail. In the event of an SBD, we will assess which means of communication are still available to us, 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.
We now communicate with our employees using the telephone, e-mail, and 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 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 during an SBD. The call tree includes all staff home and office phone numbers. The manager has all employee phone numbers at his home. We have identified persons, noted below, who live near each other and may reach each other in person:
The person to invoke use of the call free is:
Leonard Barenboim 917-432-8618
Byron Perez, 914-316-6130
Susana Aldas 973-650-2767
We are currently members of the following: SIPC and FINRA. We communicate with our regulators using the telephone, e-mail, fax, U.S. mail, and 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 speed and form (written or oral) to the means that we have used in the past to communicate with the other party.
Critical Business Constituents, Banks, and Counter-Parties
We have contacted our critical business constituents, and determined the extent to which we can continue our business relationship with them in light of the internal or external SBD. We will quickly establish alternative arrangements if a business constituent can no longer provide the needed goods or services when we need them because of a SBD to them or our firm. Our major suppliers are Con Edison, and Optimum.
We have contacted our banks. We do not have any outstanding debts or require any financing at this time. We do not maintain any Proprietary Accounts. The bank maintaining our operating account is J P Morgan Chase, 275 Halstead Avenue, Harrison, NY 10528, 914-777-0140, Leonard Gabbidon. Additional contact information: Steven Morrone, Relationship Banker, 914-777-3756, firstname.lastname@example.org
The bank maintaining our reserve capital account and a reserve operating account is Wells Fargo located at 291-293 Halstead Avenue, Harrison, NY 10528 TEL 914-777-4013, fax 914-777-4015, attn.: Mr. M. Ashley Nelson, Relationship Banker, email@example.com
We have contacted our critical counter-parties, such as our executing broker-dealers to determine if we will be able to carry out our transactions with them in light of the internal or external SBD. Where the transactions cannot be completed, we will work with or contact those counter-parties directly to make alternative arrangements to complete those transactions as soon as possible.
In an event of SBD, we will contact with DTCC as our clearing and settlement platform through their DTCC Relationship Services, ATTN:
Ms. Lena Aminova Account Manager
Sales and Solution Delivery
DTCC Jersey City
Mobile: (646) 831-1627
Or at 212-855-4270 or 212-855-5244 or 201-533-6459 or via email as may be suggested by DTCC Relationship Services.
Our firm is subject to regulation by the SEC, FINRA: We now file reports with our regulators using paper copies in the U.S. mail, and electronically using fax, e-mail, and the Internet. In the event of an SBD, we will check with the SEC, FINRA, and other regulators to determine which means of filing are still available to us, and use the means closest in speed and form (written or oral) to our previous filing method. In the event that we cannot contact our regulators, we will continue to file required reports using the communication means available to us. FINRA, 20 Broad Street, 20th Floor, New York, NY 10005.
Disclosure of Business Continuity Plan
Upon request, we provide a BCP disclosure statement to customers prior to or at acceptance of an order to establish DRIP account(s). We also post the BCP on our Web site www.directinvesting.com and mail it to customers as a print-out, upon request. The BCP disclosure statement is: Business Continuity Plan: Orders accepted by Temper of the Times Investor Services Inc. are backed up at offsite location nightly. If something were to happen to Temper's principal location, we would be able to access all our customer information at a new location. Once a customers DRIP account is open at the transfer agent the customer no longer an active customer of the Temper Enrollment Service, however we do keep records of the orders we fulfill for all our customers. In case of an emergency and the office telephone number is inoperative call the following number: 718-987-6574 or 917-432-8618.
Updates and Annual Review
Our firm will update this plan whenever we have a material change to our operations, structure, business or location. In addition, our firm will review this BCP annually, to modify it for any changes in our operations, structure, business, or location.
Senior Manager Approval
I have approved this Business Continuity Plan as reasonably designed to enable our firm to meet its obligations to customers in the event of an SBD.
Signed: Leonard Barenboim