June, 2, 2023
Business Continuity Disclosure Statement
Preferred Capital Securities, LLC (“we,” “our,” “us” or the “Firm”) has developed a business continuity plan (“BCP”) on how we will respond to a significant business disruption (“SBD”). We anticipate two different kinds of SBDs, internal and external. Internal SBDs affect only our ability to communicate and do business, such as a fire in our building. External SBDs prevent the operation of the securities markets or the ability of a number of broker-dealer firms to transact business, such as a terrorist attack; a city flood; or a wide-scale, regional disruption of some other kind, such as a power outage or a pandemic outbreak.
Since the timing and impact of disruptions is unpredictable, we will be flexible in responding to actual events as they occur. Our response to an external SBD relies more heavily on other organizations and systems, which we do not control, than our response to an internal SBD. With that in mind, we are providing you with this general information on our business continuity plan.
Contacting Us. If after an SBD you cannot contact us as you usually do by phone (855-330-6594) or email (firstname.lastname@example.org) you should go to our website at https://pcsalts.com. As discussed below, because we do not carry customer accounts or maintain custody of funds or securities, in the event of an SBD, you should first contact the financial institution that carries your account.
Our Business Continuity Plan. We plan to take appropriate actions to quickly recover and resume business operations after an SBD and respond by safeguarding our employees and property, making a financial and operational assessment, protecting the Firm’s books and records, and allowing our customers to transact business. In short, our BCP is designed to permit the Firm to resume operations as quickly as possible, depending on the scope and severity of the SBD.
Our BCP covers many areas of our business,1 including our emergency contact persons, who are Ms. Orit Small and Mr. Jeffery A. Smith, and the following: data backup and recovery; financial and operational assessments; alternative communications with customers, employees, and regulators; alternate physical location of employees; critical supplier, contractor, bank, and counter-party impact; regulatory reporting; and assuring our customers prompt access to their funds and securities if we are unable to continue our business.
SBDs can vary in their scope, such as only our Firm’s office, 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 can run our operations remotely and employees of the Firm can work outside of the affected area, such as working remotely or from an offsite location. If the SBD is so severe that it prevents us from remaining in business, we are a limited-service broker-dealer, we do not maintain custody of client funds or securities, and therefore a severe business disruption to the Firm will not affect clients’ access to their funds and securities. It is difficult to estimate how long it will take us to recover from SBDs of varying intensities and resume business. However, we do intend to stay in business.
As a limited-service broker-dealer, we do not carry customer accounts or handle customer funds or securities, and, thus, our BCP is more limited than it would be if we were a full-service broker-dealer. In the event of an internal or external SBD, you should first contact the financial institution that carries your account. That information should be readily available on your account statements provided by that financial institution.
However, in the event of an internal or external SBD, if telephone service is available our registered persons will attempt to assist you and our other customers in accessing information regarding your funds and securities from the issuer in which you and our other customers invested directly through us. Also, we will attempt to assist the broker-dealers which participated in a selling group for offerings in which we served as dealer-manager with regard to the investments of their customers in those offerings. If possible, this information will also be made available on our website.
We rely on the issuer to deliver the cash distributions from the investment to you and the other investors. If you have certificates that were issued by the issuer of your investment, you should refer to that certificate for direct contact regarding distributions, if your financial institution is unable to provide information about your account.
For More Information. If you have any questions concerning our BCP, or would like to receive a copy of it, please contact Ms. Orit Small at Preferred Capital Securities, LLC, 3290 Northside Parkway NW, Suite 800, Atlanta, Georgia 30327 or email@example.com.
1 Other areas of our business covered by our BCP include firm policy, business description, office locations, alternative physical
location(s) of employees, customers’ access to funds and securities, data back-up and recovery (hard copy and electronic),
financial and operational assessments, mission critical systems, alternate communications between the Firm and customers,
employees, and regulators, critical business constituents, banks and counter-parties, regulatory reporting, disclosure of business
continuity plan to customers, and updates and annual review of our BCP.