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Financial Planning > Behavioral Finance

Council: Financial Firms Should Back Up Phones

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NU Online News Service, Oct. 4, 2004, 5:03 p.m. EDT

Financial services companies should have back-up telecommunications systems.[@@]

The Financial Services Sector Coordinating Council for Critical Infrastructure is urging financial services companies to have secondary communications systems that can function even if their main systems go down.

Financial services companies also should ask the federal government for help with getting on a list of organizations eligible for priority telecommunications restoration, the council says.

The council notes that financial services companies and telecommunications companies often have different interpretations of contract provisions that deal with topics such as “redundancy” and “recoverability.”

The council is a group that helps private financial services companies protect themselves against the threat of terrorism. The American Council of Life Insurers, Washington, is one of the council’s member organizations.