LAFAYETTE INVESTMENTS, INC.
BUSINESS CONTINUITY DISCLOSURE SUMMARY
Lafayette Investments, Inc. (“Lafayette” or “the Firm”) creates and maintains this Business Continuity Plan (BCP) and emergency contact information that are designed to enable the Firm to continue to meet its obligations to clients and to communicate with Lafayette associates in the event of a significant business disruption. Lafayette provides this BCP Summary to clients upon account opening, and provides notice to all clients that it is available upon request. Lafayette’s website provides a link to the Firm’s Summary BCP.
Lafayette’s BCP sets forth procedures that the Firm will follow in case of a significant business disruption. Lafayette will review and update the BCP as required by important changes to the Firm’s operations. Lafayette will at a minimum conduct an annual review of its BCP and revise it as required by changes to the Firm’s business operations. Lafayette’s BCP includes by reference the Firm’s comprehensive Pandemic Preparedness Planning document updated in September 2021.
The following are the key elements of Lafayette’s BCP:
Data back-up and recovery;
All mission critical systems;
Financial and operational assessments;
Alternate communications between clients and Lafayette;
Alternate communications between Lafayette and its employees;
Alternate physical location of employees;
Critical business constituent, bank and counter-party impact;
Communications with regulators; and
How Lafayette will assure clients’ prompt access to their funds and securities in the event that Lafayette determines that it is unable to continue its business.
Lafayette has considered and made plans for disruptions that affect its office location, the particular city in which its office is located and disruptions that affect widespread areas of the region and of the continental United States.
In case of a temporary inability to use Lafayette’s office facility, employees can be relocated to alternate physical locations in order to provide full service to clients and communication with regulators. Key employees have secure remote access to every capability currently available on their office computers.
Lafayette associates have secure electronic access to the order management and account maintanance facilities of Charles Schwab (or other custodian of the client’s choice). Such facilities permit the Firm to process securities transactions promptly and accurately on behalf of clients. Each client’s custodian of choice maintains client accounts and gives clients access to their funds and securities. Charles Schwab’s BCP states that it has a comprehensive business continuity program in place, which is reviewed, updated and tested on a regular basis. Charles Schwab is confident that its program provides for continuation of client service “within minutes in most cases” following a business disruption.
Charles Schwab has provided Lafayette with alternate contact methods to be used in case of a business disruption, and key Lafayette employees have access to these methods both at work and at home. Lafayette has established and tested a contact list with employees’ home and cell phone numbers and personal email accounts for use during a business disruption. Depending upon the type of business disruption that occurs, Lafayette can remain in contact with its employees and communicate alternate operational arrangements.
Both Lafayette and Charles Schwab have in place alternate service arrangements and contingency plans sufficient to provide Lafayette with the ability to continue or promptly resume normal operations following a significant business disruption. Please note that the nature ofa particular business disruption may require deviations from the plan without prior notice.
It is Lafayette’s intention to continue essential operations and resume normal operations as soon as possible in any of the scenarios outlined above. In keeping with regulatory requirements, Lafayette’s Form ADV, Part 2 Disclosure Brochure is filed annually, and is updated promptly when material information changes occur.
September 22, 2021