Business Continuity Plan

Disclosure to Clients

Legg Mason maintains a Business Continuity Plan ("BCP") that provides a course of action for the assessment of a significant disruption to firm business and for the continuation of firm business following such an event. The BCP consists of firm-wide and department disaster recovery plans an­­­­d includes t­­­­­­­he formation of the Legg Mason Incident Management Team ("IMT"). The IMT serves as the central source of coordination and communication in the event of a significant disruption to our business. During such an event, the IMT would first ensure the health and safety of our employees, and would then oversee the re-establishment and continuation of business processes pursuant to the BCP. The IMT is responsible for evaluating the disruption, implementing the appropriate plan of action, and coordinating recovery efforts.

The BCP is designed to address significant business disruptions of varying scope including, but not limited to:

  • Legg Mason business disruption
  • Disruption to a single building in which Legg Mason business is conducted
  • Disruption to a business district in which Legg Mason business is conducted
  • City-wide business disruption
  • Regional disruption
  • National disruption.

In each of these scenarios, Legg Mason's BCP provides for an evaluation of the scope of the business disruption, and sets forth various plans of action and the activation of recovery facilities for the continuation of the firm's business, as well as, alternative means for the dissemination of information to employees and clients. The BCP serves as a guide that addresses how Legg Mason will continue to conduct business during each of the above scenarios, to the extent that it is possible pursuant to the IMT's evaluation.

It is Legg Mason's intention to minimize the recovery time necessary to resume operations. Legg Mason conducts regular testing of the recovery facilities and systems in order to ensure clients will be able to access their funds and securities within a reasonable time following a significant business disruption. Clients should be assured that Legg Mason’s phone systems and website will be available and updated with information on how clients can access their funds and securities through Legg Mason's back-up systems.

The BCP is subject to modification based on changing circumstances and assessment of need.