Advanced Equities Inc. (AEI or the Firm) is providing you with this document to inform you of its ability to respond to certain business disruptions. AEI is a full-service fully disclosed broker/dealer that introduces its accounts on a fully disclosed basis to clearing firms to facilitate its receipt and execution of securities transactions; however, all custody of assets is maintained by their fully disclosed clearing firms, mutual fund transfer agents, and insurance carriers. Consistent with its business continuity plan, AEI maintains backups of all systems and all data. Using these backups, the Firm intends to continue its business in the event of a significant business disruption. Nevertheless, there are some disruptions that may render the Firm unable to continue business. Under such circumstances, AEI will ensure that clients will be able to access their funds and securities within a reasonable time directly from their clearing firms, mutual fund transfer agents, and insurance carriers.
To receive up-to-date information during a significant business disruption, clients may call the Firm’s emergency telephone number at 1-866-274-4414 or visit AEI's Web page at www.advancedequities.com.
The following describes specific disruption events and AEI’s intended response to these corresponding general business continuation events. Clients, however, should note that these responses are subject to modification and, depending on the severity of a specific event, AEI cannot guarantee that it will be able to follow the stated course of action. If these responses are modified, AEI will post the updated disclosure statement on its Web site. In the alternative, clients may request that the Firm send them, by mail, a copy of the updated disclosure statement by contacting the Firm as follows:
Advanced Equities, Inc.
Attn: Business Continuity Planning
311 S. Wacker, Suite 1650
Chicago, IL. 60606
This disruption may be caused by physical damage, technology problems, or an inability to have personnel arrive at the office. Because some buildings, such as the corporate office, are more critical to the Firm’s operations, AEI’s ability to resume business following a business disruption to a specific building depends on the building affected. If the location is non-functional, AEI has access to duplicative systems and other processes that will be run from a separate building. The Firm expects only minimal delays from the transfer of operations. If there is a disruption to the corporate office, AEI expects that operations could be disrupted for up to two (2) hours.
In the event that there is a significant business disruption to the Firm’s internal primary systems, AEI will transfer its operations to its backup facilities, and initiate its affiliate backup program AEI’s uses First Allied Inc. FASI as AEI’s primary business disruption backup. In this process, clients may experience a minor delay in reaching the Firm due to increased telephone calls, technology delays, or other minor difficulties arising from the transfer of operations. AEI expects that any delay will be less than two (2) hours. Nevertheless, the unlikely failure of the telephone system could result in a delay of up to four (4) hours.
In the event that there is a significant business disruption that affects the business district, city, or region where any of the Firm’s primary systems are located, AEI will transfer its operations to its backup facilities. In this process, clients may experience a minor delay in reaching the Firm due to increased telephone calls, technology delays, or other minor difficulties arising from the transfer of operations. AEI expects that any delay will be less than two (2) hours.