Statement Concerning the Business Continuity Plan of Maxim Group LLC and Maxim Financial Advisors LLC **
The following information pertains to Maxim’s business continuity plan. Maxim clears its securities business through Pershing LLC (“Pershing”), and Pershing carries accounts and maintains assets of Maxim’s clients. Pershing backs up important records for Maxim in a geographically separate area. While every emergency situation poses unique problems based on external factors, Maxim has been advised by Pershing that its objective is to remain operational during different types of business disruptions. If Pershing was unable to remain operational, it is possible that your orders and requests for funds and securities could be temporarily delayed during this period. Pershing provides certain information about its business continuity plan separately.
Maxim has developed a flexible business continuity plan to accommodate different types of significant business disruptions. Maxim’s business continuity plan addresses the following elements: data back up and recovery; all mission critical systems; financial and operational assessments; alternative communications with clients, employees, and regulators; alternate physical location of employees; critical supplier, contractor, bank and counter-party impact; regulatory reporting; and assuring that clients have prompt access to their funds and securities if the Firm is unable to continue a securities business.
Business disruptions, by their nature, can vary greatly in size, scope and duration. Maxim has planned for three different “types” of business disruption, and these are as follows: a single building disruption, a localized disruption and a regional disruption. It is the intent of Maxim to remain operational during business disruptions of all three types, and for an indefinite duration of time.
Maxim maintains geographically distinct offices, all except one of which can be used as a backup facility to house mission critical persons and functions. In all types of business disruptions other than a wide reaching regional disruption that affects New York City and Nassau County, New York, plans exist for relocation to a backup facility of mission critical persons and functions. It is believed that the only type of business disruption that could force Maxim to become non-operational would be a wide reaching regional disruption as noted above. If such a wide reaching regional disruption occurred, and it became impossible for Maxim to remain operational, it is expected that Pershing would be able to execute securities transactions, process payments for securities transactions, and process requests for funds and securities.
If after a significant business disruption you cannot contact a Maxim representative as you customarily would, you should go to the Firm’s web site at maximgrp.com. If you cannot reach the Firm via this means, you should contact Pershing at 800-443-4342 or at www.Pershing.com for instructions on how you may execute securities transactions, remit payment for securities transactions, or request funds or securities.
* Please note that Maxim’s business continuity plans are subject to modification. Changes will be available upon request and will also be posted on Maxim’s website at maximgrp.com.
** Maxim Financial Advisors LLC is an SEC registered investment advisor and affiliate firm to Maxim Group LLC. Maxim Group LLC and Maxim Financial Advisors LLC will, for the purposes of this document, be referred to as “Maxim”.