Securing the Financial Services Firm

By | October 20, 2006

Traditionally, larger Financial Services Firms conduct the lion’s share of their business with in-house products and very little personal touch. Because of this, many individuals seek out the services of the small and medium business (SMB) Financial Services Firms who not only offer a broader range of products, but also faster response times, and more personal attention when compared to the services of large Enterprise Firms.

Clients of such SMB Financial Firms can now focus their energy on participating in more efficient and personable communications with their financial advisors, regardless of industry – accounting, broker-dealer or small retail banking branch office.

This flexibility permits SMB Financial Service firms to treat clients as individuals rather than a number in a database, which helps to develop a more personal, one-on-one relationship with clients. Such open stewardship is not often seen in large enterprise firms, but is preferred by many clients when planning their financial futures.

The Financial Services industry, like other regulated businesses has very little room for error when it comes to managing money. The government has outlined a number of regulations to assure businesses are good stewards of a client’s assets.

Firms found in violation of SOX, GLBA, and SEC rules can face stiff fines and potential jail time, for example those found in violation of SOX Section1102 (records tampering) can face up to 20 years in prison and monetary fines. Such violations do not only devalue the trust firms have built with their clientele, but it also places a number of monetary fines, and jail time for rule-breakers.

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