The U.S. Financial Industry Regulatory Authority today announced a new, voluntary emergency planning initiative aimed at helping small firms in times of crisis.

The Small Firm Emergency Partner Program, which was developed in consultation with an industry working group and the North American Securities Administrators Association, is designed to help two similar but geographically separated firms that use the same clearing firm establish a supportive partnership. In the event of a disaster, the impaired firm’s customer accounts will be temporarily supported by the partner firm.

“In light of the tragic events of 9/11, Hurricane Katrina, broad scale blackouts and other significant business disruptions, this program will help small firms feel more confident that they can provide their customers with assistance during a crisis,” said FINRA CEO Mary Schapiro, in a news release. “The concept is simple: should a significant business disruption occur, a firm can rely on a pre-established partner firm, unaffected by the event, to step in temporarily and help its customers. The partner firms’ common clearing firm would give the support firm access to the impaired firm’s customer information until the impaired firm recovers.”

Because the program requires participants to partner with a firm distant from their own — typically in another state — the involvement of state securities regulators is crucial for issuing any necessary waivers during a significant business disruption. Applicable laws often differ from state to state. FINRA will notify NASAA of partnerships created through the program, and NASAA will work with state regulators to make any necessary arrangements for those partnerships to work.

“State securities regulators recognize the unique challenges facing investors and investment firms in the wake of a significant business disruption,” said NASAA president and North Dakota Securities Commissioner Karen Tyler. “While we cannot predict a triggering event, we can work together to support the victims in times of crisis and mitigate uncertainty for investors as they recover. NASAA was pleased to collaborate with FINRA in the development of this important program and stands ready to support its implementation.”