A business continuity plan for a solo RIA: what happens if you can't work tomorrow
A business continuity plan sets out what happens to your clients and your firm if you are suddenly unable to work, for a week or for good. For a solo RIA it names who steps in, what access and information that person needs, where the records are, how clients are told, and what happens to billing and trading in the meantime. The plan only works if someone other than you can follow it, so write it for them and test it once a year.
Most solo advisers are the only person who knows where everything is. The custodian login, the billing spreadsheet, which client is mid-transfer, the trade that was meant to go in on Monday. If you were in hospital tomorrow, could anyone else keep the firm running for two weeks? Could they tell your clients what's happening?
What does a continuity plan cover?
| Area | What the plan says |
|---|---|
| Who steps in | A named backup, ideally another adviser, under a written agreement, plus an alternate |
| Trigger | When the plan starts: who decides, and how the backup is told |
| Access | How the backup gets into the systems they need, without your personal passwords |
| Records | Where the client list, agreements, account list, models and billing method live |
| Clients | Who tells clients, what they're told, and how quickly |
| Trading and billing | What can happen while you're away, and what waits |
| Permanent absence | What happens if you can't come back: transition of clients, records and the business |
What does the backup need to find in the first hour?
- The plan itself, and the backup agreement.
- The client list with contact details.
- Each client's accounts at the custodian, and which are discretionary.
- Anything in flight: transfers, pending trades, open requests.
- The billing method and the date of the next run.
- Your compliance consultant's and attorney's contact details.
If these live in your head or in five places, the backup spends the first week looking instead of helping.
A worked example
Take a hypothetical solo adviser with about 70 households. She signs a backup agreement with a nearby adviser she trusts and names her office manager as the practical contact.
- The plan is two pages, stored where both the backup and the office manager can reach it.
- The custodian's process for an alternate contact or delegated access is set up in advance, rather than shared passwords.
- Client records, agreements, the account list with discretionary status and the billing method are kept in one system, and the backup has been shown where.
- A short client letter is drafted and ready to send.
- Once a year, the backup walks through the plan with her and confirms they can find everything on the list.
How do you test it?
Once a year, sit with your backup for an hour. Ask them to find the six items above without your help. Time it. Anything they can't find, fix that week. Update the plan whenever your systems, staff or backup change.
When is this overkill?
For a solo adviser, it isn't. The plan can be short, but it needs to exist, be written for someone else, and be tested. A firm with several advisers who can cover for each other still needs the access and records parts written down.
How Advorra fits
Advorra keeps client and household records, accounts with discretionary status, the strategy each account follows, IPS documents, billing runs and the procedures vault in one place. A backup who has been shown where things live has one system to learn, not five. See the product page, or read written procedures for small RIAs and RIA books and records.
One thing to do this week: write down the six things your backup would need in the first hour, and where each one is.
An operations guide, not legal or compliance advice. Have your attorney and compliance consultant review any backup agreement.
Questions advisors ask
Who should be my backup?
Often another adviser or firm you trust, under a written agreement. Some advisers also name a family member or office manager for practical steps, separate from anyone who gives advice.
Is a continuity plan required?
Requirements vary by regulator and state. Many firms are expected to have one. Ask your compliance consultant what applies to your firm.
What's the difference between continuity and succession?
Continuity covers a temporary or sudden absence. Succession covers a planned handover of the business. A good continuity plan includes what happens if the absence becomes permanent.
Should I give my backup my passwords?
Don't share personal logins. Use proper delegated or emergency access where your systems support it, and keep instructions for that access somewhere secure that the backup can reach.
Is this legal advice?
No. It is an operations guide. Your attorney and compliance consultant should review any backup agreement.
See it on a demo firm
Advorra is practice software for independent RIAs: clients, models, IPS, billing and compliance records in one place, on top of the custodian you already use. Built by The CollabHub.
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