SUMMARY OF BUSINESS CONTINUITY PLAN
Lemley Yarling & Co. (the “firm”) maintains this Business Continuity Plan, describing our policy used in responding to a Significant Business Disruption (“SBD”).
Our response is directed to 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 customers prompt access to their funds and securities.
Our plan anticipates two kinds of SBDs, internal and external. Internal SBDs affect 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, especially on the
capabilities of our clearing firm.
- Emergency Contact Persons
Our firm’s two emergency contact persons are:
Customers should direct their emergency contacts to the above persons.
- Business Description
Our clearing firm is:
RBC Capital Markets LLC
60 South 6th Street
Minneapolis MN, USA 55402-4422
ATTN: Rhianna Stave
- Office Locations
- Office Location #1
Our Location #1 Office is at 309 W Johnson Street Apt 544, Madison, WI 53703. (800) 793-3665.
- Office Location #2
Our Location #2 Office is at 309 W Johnson Street Apt 544, Madison, WI 53703. (800) 253-6539.
- Alternative Physical Location of Employees
In the event of an SBD, we will move our staff from the affected office to our unaffected office location.
- Customers’ Access to Funds and Securities
Our firm does not maintain custody of customers’ funds or securities, which are maintained at our clearing firm,
RBC Capital Markets LLC.
In the event of an internal or external SBD, if telephone service is available, our registered persons will take customer
orders or instructions and contact our clearing firm on their behalf, and if our Web access is available, our firm will post on our Web
site that customers may access their funds and securities by contacting Budlemley@aol.com. The
firm will make this information available to customers through its disclosure policy.
- Financial and Operational Assessments
- Operational Risk
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 and telephone voice mail.
- 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 clearing firm, critical banks, and investors to apprise them
of our financial status.
- Mission Critical Systems
Our firm’s “mission critical systems” are those that ensure prompt and accurate processing of securities transactions, including order
taking, order entry, execution, comparison, allocation, clearance and settlement of securities transactions, the maintenance of customer
accounts, access to customer accounts, and the delivery of funds and securities. Regarding, order taking and entry, See Section A1 below.
We have primary responsibility for establishing and maintaining our business relationships with our customers and have sole responsibility
for our mission critical functions of order taking and entry. Our clearing firm provides, through contract, the execution, comparison,
allocation, clearance and settlement of securities transactions, the maintenance of customer accounts, access to customer accounts,
and the delivery of funds and securities.
Our clearing firm represents that it backs up our records at a remote site. Our clearing firm represents that it operates a back-up operating
facility in a geographically separate area with the capability to conduct the same volume of business as its primary site. Our clearing firm has
also confirmed the effectiveness of its back-up arrangements to recover from a wide scale disruption by testing.
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. Our clearing firm has the following SBD recovery time and resumption objectives: recovery time
period of 4 hours; and resumption time of 48 hours.
- Our Firm’s Mission Critical Systems
- Order Taking
Our firm receives orders only from Lemley Yarling Management Co., and its President, Ralph J. Lemley. All orders are discretionary orders
where Lemley Yarling Management & Co. is vested with discretion by customers. Customers are not allowed to transmit orders directly to Lemley Yarling & Co.
- Order Entry
Currently, our firm enters orders by recording them on paper and sending them to our clearing firm telephonically.
Orders are transmitted by telephone to RBC. Our contact for executing orders is Michael P. Fine (612)373-1961
Our client service contact at RBC is Ruth Hannenberg (630) 297-5200.
- Alternate Communications Between the Firm and Customers
We now communicate with our customers using the telephone, e-mail, our Web site, fax, U.S. mail, and in person visits at our firm or at the
other’s location. 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.
- Disclosure of Business Continuity Plan
This BCP disclosure statement is provided to customers at account opening, posted on our
Web site and mailed to customers upon request.