This website uses cookies. By continuing to browse this website you are agreeing to our use of cookies.

Find out more about cookies or view our cookie policy .

Check your settings below and select the cookies you’re happy with.

Strictly Necessary Cookies

These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can set your browser to block or alert you about these cookies, but some parts of the site will not then work. These cookies do not store any information which allows us to identify you unless you are logged into your account.

Performance Cookies

These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies we will not know when you have visited our site and will not be able to monitor its performance.

Functional Cookies

These cookies enable the website to provide enhanced functionality and personalisation. They may be set by us or by third party providers whose services we have added to our pages. If you do not allow these cookies then some or all of these services may not function properly.

Targeting Cookies

These cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly information which allows us to identify you personally but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Find out more about www.allaboutcookies.org or view our cookie policy .

Financial Conduct Authority

  • FCA Handbook

SYSC 4.1 General requirements

  • Table of Contents
  • Related Sections
  • Related Forms
  • Instruments
  • Browse by topics
  • Level 3 Materials

Content Options

View options, more resources:, application to a common platform firm.

21 For a common platform firm :

the MiFID Org Regulation applies, as summarised in SYSC 1 Annex 1 3.2G, SYSC 1 Annex 1 3.2-AR and SYSC 1 Annex 1 3.2-BR; and

the rules and guidance apply as set out in the table below:

Application to a MiFID optional exemption firm and to a third country firm

21 For a MiFID optional exemption firm and a third country firm :

the rules and guidance in this chapter apply to them as if they were rules or as guidance in accordance with SYSC 1 Annex 1 3.2CR(1); and

those articles of the MiFID Org Regulation in SYSC 1 Annex 1 2.8AR and 3.2CR apply to them as if they were rules or as guidance in accordance with SYSC 1 Annex 1 3.2CR(2).

General requirements

A firm must have robust governance arrangements, which include a clear organisational structure with well defined, transparent and consistent lines of responsibility, effective processes to identify, manage, monitor and report the risks it is or might be exposed to, and internal control mechanisms, including sound administrative and accounting procedures and effective control and safeguard arrangements for information processing systems. 8

[ Note : article 74 (1) of CRD , article 16 21 (5) second paragraph of MiFID , 12 article 12(1)(a) of the UCITS Directive , and article 18(1) of AIFMD 12 ] 10

Without prejudice to the ability of the FCA or any other relevant competent authority to require access to communications in accordance with MiFID and MiFIR , a common platform firm must have sound security mechanisms in place for the following, while maintaining the confidentiality of the data at all times: 21

to guarantee the security and authentication of the means of transfer of information; 21

to minimise the risk of data corruption and unauthorised access; and 21

to prevent information leakage. 21

[ Note: article 16(5) third paragraph of MiFID ] 21

14 A full-scope UK AIFM must comply with the AIFM Remuneration Code .

[ Note : article 13(1) of AIFMD ]

14 A full-scope UK AIFM must, in particular:

have rules for personal transactions by its employees or for the holding or management of investments it invests on its own account;

ensure that each transaction involving the AIFs may be reconstructed according to its origin, the parties to it, its nature, and the time and place at which it was effected; and

ensure that the assets of the AIFs managed by the AIFM are invested in accordance with the instrument constituting the fund and the legal provisions in force.

[ Note : article 18(1) second paragraph of AIFMD ]

[deleted] 28

19 A UK UCITS management company must comply with the UCITS Remuneration Code if it manages a UCITS scheme . 25

[ Note : article 14a(1) of the UCITS Directive ]

19 A UK UCITS management company must have appropriate procedures for its employees to report potential or actual breaches of UK provisions which implemented 25 the UCITS Directive internally through a specific, independent and autonomous channel.

[ Note : article 99d(5) of the UCITS Directive ]

19 SYSC 18 (Guidance on Public Interest Disclosure Act: Whistleblowing) contains further guidance on the effect of the Public Interest Disclosure Act 1998 in the context of the relationship between firms and the FCA .

For a common platform firm , the 3 arrangements, processes and mechanisms referred to in SYSC 4.1.1 R must be comprehensive and proportionate to the nature, scale and complexity of the risks inherent in the business model and of 13 the common platform firm's activities and must take into account the specific technical criteria described in article 21(3) of the MiFID Org Regulation 21 , SYSC 5.1.7 R , SYSC 7 and whichever of the following is 28 applicable:

[deleted] 28 ;

(for a full-scope UK AIFM ) SYSC 19B (AIFM Remuneration Code);

(for a firm to which SYSC 19D applies) SYSC 19D (Dual-regulated firms Remuneration Code); 28

(for a firm to which the remuneration part of the PRA Rulebook applies) the remuneration part of the PRA Rulebook ; or 28

28 (for a firm to which SYSC 19G applies) SYSC 19G (MIFIDPRU Remuneration Code).

3 Other firms should take account of the comprehensiveness and proportionality rule ( SYSC 4.1.2 R ) as if it were guidance (and as if "should" appeared in that rule 21 instead of "must") as explained in SYSC 1 Annex 1 3.3 R(1) 21 . 9

10 For a management company or a full-scope UK AIFM 14 , the arrangements, processes and mechanisms referred to in SYSC 4.1.1 R and SYSC 4.1.1A R 14 must also take account of the UCITS schemes 25 managed by the management company or the AIFs managed by the full-scope UK AIFM 14 .

[ Note: article 12(1) second paragraph of the UCITS Directive and article 18(1) second paragraph of AIFMD 14 ]

Resources for management companies and AIFMs 14

10 A management company and 25 a full-scope UK AIFM 25 must have, and employ effectively, the resources and procedures that are necessary for the proper performance of its business activities.

[ Note: articles 12(1)(a) and 14(1)(c) of the UCITS Directive and article 12(1)(c) of AIFMD 14 ]

14 A full-scope UK AIFM must use, at all times, adequate and appropriate human and technical resources that are necessary for the proper management of AIFs .

[ Note : article 18(1) first paragraph of AIFMD ]

Subordinate measures relating to provisions implementing article 12(1) of AIFMD

14 Articles 16 to 29 of the AIFMD level 2 regulation provide detailed rules supplementing the UK provisions which implemented 25 article 12(1) of AIFMD , and 25 articles 57 to 66 of the AIFMD level 2 regulation provide detailed rules supplementing the UK provisions which implemented 25 articles 12 and 18 of AIFMD .

13 13 Mechanisms and procedures for a firm

A firm (with the exception of a common platform firm and a 21 sole trader who does not employ any person who is required to be approved under section 59 of the Act (Approval for particular arrangements)) 3 must, taking into account the nature, scale and complexity of the business of the firm , and the nature and range of the financial services, claims management services and other 23 activities undertaken in the course of that business:

(if it is 21 a management company ) 10 establish, implement and maintain decision-making procedures and an organisational structure which clearly and in a documented manner specifies reporting lines and allocates functions and responsibilities;

establish, implement and maintain adequate internal control mechanisms designed to secure compliance with decisions and procedures at all levels of the firm ;

21 establish, implement and maintain effective internal reporting and communication of information at all relevant levels of the firm ; and 10

10 (if it is a management company ) establish, implement and maintain effective internal reporting and communication of information at all relevant levels of the management company as well as effective information flows with any third party involved.

[ Note : 21 articles 4(1) final paragraph, 4(1)(a), 4(1)(c) and 4(1)(d) of the UCITS implementing Directive ] 10

3 A firm that is not a common platform firm or a management company 10 should take into account the decision-making procedures and effective internal reporting rules ( SYSC 4.1.4R (1) , 10 (3) and (4) ) 10 as if they were guidance (and as if "should" appeared in those rules 21 instead of "must") as explained in SYSC 1 Annex 1 3.3 R(1) 21 .

A 21 management company 10 must establish, implement and maintain systems and procedures that are adequate to safeguard the security, integrity and confidentiality of information, taking into account the nature of the information in question.

[ Note : 21 article 4(2) of the UCITS implementing Directive ] 10

Business continuity

A common platform firm must take reasonable steps to ensure continuity and regularity in the performance of its regulated activities . To this end the common platform firm 3 must employ appropriate and proportionate systems, resources and procedures.

[ Note : article 16 21 (4) of MiFID ]

A CRR firm 21 and a management company 10 must establish, implement and maintain an adequate business continuity policy aimed at ensuring, in the case of an interruption to its systems and procedures, that any losses are limited, the preservation of essential data and functions, and the maintenance of its regulated activities , or, in the case of a management company , its collective portfolio management activities, 10 or, where that is not possible, the timely recovery of such data and functions and the timely resumption of those activities. 10

[ Note : 21 article 4(3) of the UCITS implementing Directive and article 85(2) of 21 CRD 11 ] 10

3 Other firms should take account of the business continuity rules ( SYSC 4.1.6 R and 4.1.7 R ) as if they were guidance (and as if "should" appeared in those rules 21 instead of "must") as explained in SYSC 1 Annex 1 3.3 R(1) 21 .

The matters dealt with in a business continuity policy should include:

resource requirements such as people, systems and other assets, and arrangements for obtaining these resources;

the recovery priorities for the firm's operations;

communication arrangements for internal and external concerned parties (including the FCA 21 , clients and the press);

escalation and invocation plans that outline the processes for implementing the business continuity plans, together with relevant contact information;

processes to validate the integrity of information affected by the disruption; and

regular testing of the business continuity policy in an appropriate and proportionate manner in accordance with SYSC 4.1.10R and for a common platform firm with article 21(5) of the MiFID Org Regulation 21 .

16 Operators of electronic systems in relation to lending: arrangements to administer loans in the event of platform failure

26 An operator of an electronic system in relation to lending must have arrangements in place to ensure that P2P agreements facilitated by it will have a reasonable likelihood of being 26 managed and administered, in accordance with the contract terms between the firm and its relevant borrower and lender customers 26 , if at any time it ceases to manage and administer those P2P agreements 26 .

Under (1), and wherever the requirement in (1) is referenced in the FCA’s rules and guidance , the reference to P2P agreements includes any non-P2P agreement included in a P2P portfolio . 26

The arrangements under (1) must not be designed to prefer any particular customers or class of customers for whom it manages and administers P2P agreements or non-P2P agreements . 26

[deleted] 26

16 Arrangements that are required to be put in place under SYSC 4.1.8AR 26 may include any one or more of the following 26 :

entering into an arrangement with another firm that has the appropriate permissions 26 to take over the management and administration of P2P agreements if the operator ceases to operate the electronic system in relation to lending and, where appropriate: 26

obtaining prior and informed consent from lender clients to fund the continued cost of management and administration of their respective loans, for example through increased commissions; and/or 26

obtaining prior and informed consent from lender clients and borrower clients for the transfer of the service of managing and administration of P2P agreements from the firm to that other firm ; or 26

holding sufficient collateral 26 to cover the cost of management and administration while the loan book is wound down, ensuring that the collateral is held through a structure that is ring-fenced in the event of the firm’s insolvency 26 ; or

managing the loan book in a way that ensures that income from P2P agreements facilitated by the firm is sufficient to cover the costs of managing and administering those agreements during the winding down process, taking into account the reduction of the loan pool and fee income from it.

When designing its arrangements, a firm should take into account the general 26 law to ensure that the insolvency of the firm does not prejudice the operation of arrangements that the firm has put in place. 26

A firm should consider the need to obtain professional advice on the adequacy of its arrangements. For example, a firm may benefit from obtaining legal advice or advice from a qualified insolvency practitioner on the likelihood of its arrangements securing the required outcome for continuity of management and administration of P2P agreements . 26

In assessing the adequacy of its arrangements, a firm should consider, in particular: 26

whether any terms included in relevant contracts as part of its arrangements are enforceable, for example terms in customer, service and supplier contracts; 26

the extent to which other practical obstacles could foreseeably prevent the implementation of the arrangements or frustrate the required outcome, including whether the firm will be likely to have sufficient financial resources to fund the implementation of the arrangements at the relevant time; 26

whether the arrangements make adequate provision for any activities that are ancillary to the management and administration of P2P agreements upon which the required outcome is, or could be, dependent; 26

whether, having regard to SYSC 4.1.8AR(3) , its arrangements are designed so as not to produce a better outcome for its customers who are party to non-P2P agreements than for customers who are party to P2P agreements ; 26

whether its arrangements take into account any relevant security arrangements in relation to loans; and 26

whether its arrangements take into account any relevant tax arrangements for lender clients . 26

Firms are reminded of the disclosure requirements in COBS 18.12.28R (Information concerning platform failure). 26

Firms may find it useful to refer to the FCA’s Wind-down Planning Guide ( WDPG ) when designing their arrangements. 26

26 In line with Principle 11 and SUP 15.3.8G (Communication with the appropriate regulator in accordance with Principle 11), a firm should notify the FCA in writing if it is contemplating:

ceasing to manage and administer P2P agreements facilitated by it;

implementing its arrangements under SYSC 4.1.8AR ; or

implementing any other arrangements that have a similar purpose.

26 An operator of an electronic system in relation to lending must produce and keep up to date a P2P resolution manual which contains information about the firm that, in the event of the firm’s insolvency, would assist in resolving the firm’s business of management and administration of P2P agreements that it has facilitated. For these purposes, the reference to P2P agreements includes any non-P2P agreement included in a P2P portfolio . It must, as a minimum, include a written explanation of each of the following:

how the firm conducts the business of management and administration of P2P agreements that it has facilitated, what the day-to-day operation of that business entails and what resources would be needed to continue that business if the firm ceased to carry it on, including a specification of:

critical staff and their respective roles;

critical premises;

the firm’s IT systems, including details of data storage and data recovery arrangements;

the firm’s record-keeping systems, including how records are organised;

all relevant bank accounts and payment facilities;

all relevant persons outside of the firm , and their respective roles, including any outsourced service providers;

all relevant legal documentation, including customer, service and supplier contracts;

the firm’s group , using a structure chart showing:

the legal entities in the group ;

the ownership structure of those entities; and

the jurisdiction of those entities; and

how the firm holds and manages any security for loans;

the steps that would need to be implemented under the arrangements in place under SYSC 4.1.8AR in order for P2P agreements facilitated by the firm to continue to be managed and administered;

any terms in contracts that may need to be relied on to ensure P2P agreements facilitated by it will continue to be managed and administered under those arrangements; and

how the firm’s systems can produce the detail specified in COBS 18.12.31R (Ongoing disclosures) for each P2P agreement facilitated by it.

26 An operator of an electronic system in relation to lending must put in place arrangements to ensure that its P2P resolution manual would be immediately available to:

an administrator, receiver, trustee, liquidator or analogous officer appointed in respect of it or any material part of its property; and

the FCA , on request.

26 A operator of an electronic system in relation to lending must store its P2P resolution manual in the same place as its CASS resolution pack , if CASS 10 (CASS resolution pack) applies to it.

Operators of electronic systems in relation to lending: title transfer

An operator of an electronic system in relation to lending must not accept, take, or receive the transfer of full ownership of money relating to P2P agreements . 18

If an operator of an electronic system in relation to lending has made a client money election under CASS 7.10.7AR , when it is operating an electronic system in relation to non-P2P agreements it must also not accept, take, or receive the transfer of full ownership of money relating to non-P2P agreements . 18

Accounting policies: management company

A 21 management company 10 must establish, implement and maintain accounting policies and procedures that enable it, at the request of the FCA 20 , to deliver in a timely manner to the FCA 20 financial reports which reflect a true and fair view of its financial position and which comply with all applicable accounting standards and rules.

[ Note : 21 article 4(4) of the UCITS implementing Directive ] 10

Regular monitoring: management company

A 21 management company 10 must monitor and, on a regular basis, evaluate the adequacy and effectiveness of its systems, internal control mechanisms and arrangements established in accordance with SYSC 4.1.4 R to SYSC 4.1.9 R and take appropriate measures to address any deficiencies.

[ Note : 21 article 4(5) of the UCITS implementing Directive ] 10

Regular monitoring: other firms

3 Other firms should take account of the regular monitoring rule ( SYSC 4.1.10 R ) as if it were guidance (and as if "should" appeared in that rule 21 instead of "must") as explained in SYSC 1 Annex 1 3.3 R(1) 21 , but ignoring the cross-reference to SYSC 4.1.5 R and SYSC 4.1.9R 21 .

Audit committee

Depending on the nature, scale and complexity of its business, it may be appropriate for a firm to form an audit committee. An audit committee could typically examine management's process for ensuring the appropriateness and effectiveness of systems and controls, examine the arrangements made by management to ensure compliance with requirements and standards under the regulatory system , oversee the functioning of the internal audit function (if applicable) and provide an interface between management and external auditors. It should have an appropriate number of non-executive directors and it should have formal terms of reference.

[deleted] 8

Risk control: additional guidance

7 Firms should also consider the additional guidance on risk-centric governance arrangements for effective risk management contained in SYSC 21 .

Apportionment of responsibilities: the role of the non-executive director

7 The role undertaken by a non-executive director will vary from one firm to another. 27

Investment strategy and investment decision making of an operator of a personal pension scheme or stakeholder pension scheme

24 This guidance sets out the FCA’s expectation on how an operator of a personal pension scheme or a stakeholder pension scheme may take into account ESG financial considerations and other financial considerations and non-financial matters as part of its investment strategy or investment decision making, to demonstrate compliance with Principles 2, 3, 6 or 8.

This guidance only applies where the personal pension scheme or stakeholder pension scheme operator’s investment strategy or investment decision could have a material impact on a client or a relevant policyholder’s investment returns and relates to a product where:

the primary purpose of the product is to provide an investment return; and

the investment risk is borne by a client who is a natural person or a relevant policyholder .

As part of its investment strategy or investment decision making, an operator of a personal pension scheme or a stakeholder pension scheme should take into account ESG financial considerations and other financial considerations , over the period of time that the firm reasonably considers is needed to achieve the objective of the investment or the investment strategy.

References to other financial considerations in (3) may include (but are not limited to) interest rates, liquidity, concentration, exchange rate, political and counterparty risks.

As part of its investment strategy or investment decision making in relation to a product, an operator of a personal pension scheme or a stakeholder pension scheme may take into account non-financial matters if:

the firm has good reason to consider that affected clients or relevant policyholders would generally share the views on which the non-financial matters are based; and

taking those matters into account would not involve a risk of a significant financial detriment to an affected investment .

(5) does not apply to a firm’s investment strategy or investment decision making in relation to a product (other than in relation to a relevant scheme or a pathway investment ) that has been deliberately designed by the firm to take into account non-financial matters , and clients or relevant policyholders make an active decision to select that product.

Cookies on GOV.UK

We use some essential cookies to make this website work.

We’d like to set additional cookies to understand how you use GOV.UK, remember your settings and improve government services.

We also use cookies set by other sites to help us deliver content from their services.

You have accepted additional cookies. You can change your cookie settings at any time.

You have rejected additional cookies. You can change your cookie settings at any time.

is a business continuity plan a legal requirement uk

  • Crime, justice and law
  • Prisons and probation

HMPPS business continuity policy framework

Guidance and requirements of HMPPS to ensure business continuity is implemented and delivered consistently across the organisation.

is a business continuity plan a legal requirement uk

PDF , 378 KB , 13 pages

Annex A: BIA/BCP Template, Prisons

ODS , 55.9 KB

This file is in an OpenDocument format

Annex B: BIA/BCP template, Probation Delivery Units

ODS , 49.4 KB

Annex C: BIA/BCP Template, Probation Approved Premises

ODS , 56.4 KB

Annex D: BIA/BCP template, Regional Office/Sites/Hubs

ODS , 56 KB

Annex E: BIA/BCP template, Probation UPW/Programmes/other functions

ODS , 48.1 KB

Annex F: Supplementary Guidance to aide completion of BIA/BC templates

ODT , 9.37 MB

Annex G: BC Incident Reporting Form

ODT , 13.4 KB

Annex H: Exercise plan Template

ODT , 54.9 KB

Annex I: Lessons Learnt log template

ODT , 53.5 KB

This policy framework sets out the arrangements necessary to ensure Business Continuity Management (BCM) is performed in accordance with ISO 22301 as required by Cabinet Office. All providers of HMPPS services (including CRCs and privately operated establishments) are required to produce and maintain Business Continuity Plans (BCPs) to ensure critical business activities and locations remain operational and that a prompt and efficient recovery of ‘business as usual’ activities takes place in the event of an incident or other disruption affecting premises or resources (including both staff and information). The policy framework will replace the existing PSI 13/2014, PI 01/2016 and AI 11/2014 for business continuity. It provides a singular framework to ensure consistency in the delivery of business continuity across HMPPS.

Policy framework updated.

Annexes updated.

First published.

Related content

Is this page useful.

  • Yes this page is useful
  • No this page is not useful

Help us improve GOV.UK

Don’t include personal or financial information like your National Insurance number or credit card details.

To help us improve GOV.UK, we’d like to know more about your visit today. We’ll send you a link to a feedback form. It will take only 2 minutes to fill in. Don’t worry we won’t send you spam or share your email address with anyone.

Four Benefits of Preparing a Business Continuity Plan After Purchasing Another Company

' decoding=

By Thomas Sutherland

Updated on 8 September 2023 Reading time: 5 minutes

This article meets our strict editorial principles. Our lawyers, experienced writers and legally trained editorial team put every effort into ensuring the information published on our website is accurate. We encourage you to seek independent legal advice. Learn more .

  • 1. Minimising Operational Disruptions 

2. Ensuring Regulatory Compliance

3. enhancing stakeholder confidence, 4. facilitating effective integration, key takeaways, frequently asked questions.

In today’s fast-paced and ever-changing business landscape, companies constantly seek growth opportunities, often through mergers and acquisitions. Accordingly, business purchasers should have a robust Business Continuity Plan (BCP) when purchasing a company. BCPs (otherwise referred to as disaster recovery plans) outline strategies and procedures to ensure the continuous operation of a business during and after disruptive events. This article will explore four key benefits of preparing a comprehensive Business Continuity Plan after acquiring a company.

1. Minimising Operational Disruptions 

One of the primary benefits of implementing a Business Continuity Plan after acquiring a company is the ability to minimise operational disruptions. Businesses and employees thrive on continuity rather than sudden, unpredictable change.

Mergers and acquisitions inherently involve changes in: 

  • management;
  • systems; 
  • processes; and 
  • corporate culture. 

Unfortunately, these can create uncertainties and potential disruptions. By developing a BCP, the acquiring company can identify critical business functions and potential vulnerabilities and develop contingency plans to mitigate these risks.

The BCP should include strategies to address internal and external threats, such as: 

  • natural disasters;
  • cybersecurity breaches ;
  • supply chain disruptions; and 
  • regulatory changes. 

By doing so, the acquiring company can proactively identify potential risks and establish processes to ensure business continuity, protecting the organisation from significant financial losses, reputational damage, and customer dissatisfaction.

Another critical benefit of business continuity planning after acquiring a company is ensuring regulatory compliance.

The regulatory landscape in the UK is complex and subject to frequent changes. As such, this compels businesses to stay abreast of legal requirements and industry standards. Failure to comply with these regulations can lead to hefty fines, legal repercussions, and damage to the company’s reputation.

A well-designed BCP incorporates compliance requirements into its framework. It helps the acquiring company understand and align its processes with relevant laws, regulations and industry best practices. This ensures that the newly acquired business: 

  • operates in accordance with legal guidelines;
  • safeguards sensitive data; 
  • protects customer privacy ; and 
  • meets industry-specific standards.

By proactively addressing compliance issues through the BCP, the acquiring company can reduce the risk of costly penalties and legal disputes. Thus the new owner can focus on improving the company’s performance internally rather than facing external threats.

Front page of publication

LegalVision’s Buying a Business: Guide to Negotiating Terms allows you to protect yourself by understanding which key terms to negotiate when buying a business.

Preparing a comprehensive BCP after purchasing a company demonstrates a commitment to operational excellence and risk management.

Stakeholders, including investors, employees, customers, and partners, expect the acquiring party to have a clear vision and a well-defined strategy to handle potential disruptions.

The acquiring company can build confidence, establish trust, and foster positive relationships by sharing the BCP with stakeholders.

Furthermore, employees will feel reassured knowing that their jobs are secure and that management has prepared contingency plans to handle potential disruptions. Additionally, customers will have confidence in the acquiring company’s ability to maintain consistent service levels and meet their needs even during challenging times.

Similarly, investors and partners will perceive the acquiring entity as a responsible and reliable party. This can increase the likelihood of continued financial support and collaboration.

Integrating two companies after an acquisition can be a complex and challenging process. A well-developed BCP can serve as a roadmap for effective integration, ensuring a smooth transition and maximising synergies between the acquiring and acquired companies.  

The BCP can identify areas of overlap and duplication, streamline operations, and leverage the strengths of both organisations. In addition, the BCP should: 

  • outline communication channels, roles, and responsibilities; and 
  • clearly define the steps required to integrate systems, processes and people.  

The BCP facilitates cultural integration by aligning the acquired company with the acquiring company’s vision, mission, and values. In turn, this promotes collaboration and teamwork. Moreover, the integration process becomes more efficient and effective. Accordingly, this minimises disruption to day-to-day operations and enables the organisation to capitalise on the benefits of the acquisition quickly.

Acquiring a company requires business continuity management through a Business Continuity Plan (BCP) in an increasingly dynamic and unpredictable business environment. By preparing for potential disruptions, ensuring regulatory compliance, enhancing stakeholder confidence, and facilitating effective integration, the acquiring company can mitigate risks, protect its financial and operational stability, and capitalise on the synergies of the acquisition.

Investing time and resources into developing a robust BCP is essential for any organisation looking to thrive in the face of uncertainty and change. Naturally, many new business owners ask expert lawyers to assist them with drafting and preparing BCPs to ensure peace of mind and good draftsmanship.

If you need legal assistance preparing a Business Continuity Plan, our experienced business structure lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page . 

Business continuity management systems and plans often come into effect following devastating cyber-attacks or unexpected incidents (including fires and natural disasters).

Whilst Business Continuity Plans are not technically mandatory, the absence of one (and resultant indecision or incorrect actions) could breach UK law and be problematic for your business.

We appreciate your feedback – your submission has been successfully received.

Register for our free webinars

Spam, cookies and content: legal considerations when leveraging digital marketing, contact us now.

Fill out the form and we will contact you within one business day

Related articles

' decoding=

Benefit of Instructing a Lawyer for Business Sale or Purchase Valuation

' decoding=

Five Advantages of Purchasing a UK Franchise Business

' decoding=

Advantages and Disadvantages of Using Crowdfunding to Purchase a UK Company

' decoding=

Five Benefits of Purchasing a UK Company That Sells Goods Online

We’re an award-winning law firm

Award

2023 Economic Innovator of the Year Finalist - The Spectator

Award

2023 Law Company of the Year Finalist - The Lawyer Awards

Award

2023 Future of Legal Services Innovation - Legal Innovation Awards

Award

2021 Fastest Growing Law Firm in APAC - Financial Times

  • Lexis ® Library gnb_contactus_newwindow

LexisNexis Webinars

Offering minimal impact on your working day, covering the hottest topics and bringing the industry's experts to you whenever and wherever you choose, LexisNexis ® Webinars offer the ideal solution for your training needs.

Learning Center Splash

  • Lexis ® Smart Forms gnb_contactus_newwindow

Lexis ® Smart Precedents

Lexis ® Smart Precedents is a quick way to draft accurate precedents so you can be confident your documents are correct, giving you more time to focus on clients.

Learning Center Splash

  • Blogs gnb_contactus_newwindow
  • LexTalk ® UK gnb_contactus_newwindow

--> Topics