A business continuity plan (BCP) sets out how a fund and its manager keep operating through disruption: loss of a key person, an office, a system or a service provider. Allocators ask for it as part of operational due diligence.
For a small manager the plan covers who can trade and instruct if the portfolio manager is unavailable, how positions can be flattened, where data is backed up and how investors are informed. For the fund, it covers the continuity of administration, custody and dealing if any provider fails.
A plan that exists only on paper fails due diligence; allocators ask whether it has been tested.
Because administration, custody and dealing on POD run at platform level, the fund-side continuity plan is provided by POD; the manager provides the plan for the trading team. [CONFIRM: what POD states publicly about its own BCP.]
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