Business Continuity Plan

 

All securities transactions are offered by and conducted through K Capital LLC, a broker-dealer registered with the SEC, a member of FINRA and SIPC. K Capital LLC and Oracle Partners of New York LLC are wholly owned subsidiaries of Kinetic Advisors LLC.

 

K Capital is required by U.S. securities regulations to develop a Business Continuity Plan ("BCP") in order to be able to continue conducting business in the event of a significant disruption or disaster. We are also required to provide this summary disclosure statement to potential clients of K Capital so that they know our risk mitigation strategy in the event of an interruption to our daily conduct of business. As the timing and frequency of disasters and disruptions are both unpredictable, we may exercise flexibility in responding to actual events as they occur.

 

K Capital's BCP is aimed at responding to a Significant Business Disruption ("SBD") by protecting its employees and assets, assessing its financial and operational capability, and rapidly instituting recovery measures to resume operations—and therefore allow our customers to conduct business as soon as possible—while protecting the firm's books and records. The BCP is intended to comply with the mandates found in FINRA Rule 4370.

 

Our BCP anticipates two kinds of SBDs, internal and external. Internal SBDs affect only our firm's ability to communicate and do business, such as a disastrous event that would occur within our business premises. External SBDs prevent the operation of the securities markets or a number of firms, such as a terrorist attack, or a wide-scale, regional disruption. Our response to an external SBD relies more heavily on other organizations and systems, and other entities with which we have agreements. Our firm does not maintain custody of clients' funds or securities.

 

In the event of an SBD, either external or internal, K Capital has established an ordered dependency list and will begin immediately communicating relevant information with our clients, employees, critical business constituents, critical banks, critical counter-parties, and securities regulators. The communication options we will employ may include email, telephony (mobile and fixed line), U.S. postal mail service, and our website.

 

Mission-critical systems are defined by K Capital accordingly in the BCP and all mission-critical systems are backed up with at least one copy stored offsite. In the event of an SBD, these backups will be obtained and restored as needed to continue conducting business.

 

Despite our efforts to create an ideal BCP and therefore be able to address an SBD with a greater degree of preparation, we acknowledge the unpredictable nature of disasters and the impossibility of anticipating every possible catastrophic scenario. We are confident that our measures will allow us to continue conducting business with minimum impact to our clients and business partners; however, the possibility of an adverse effect to our operations by a third party's (beyond our knowledge and control) inability to cope with the SBD cannot be totally disregarded.

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