In light of fines for IT contractors, Ian McKenna, director of the Finance & Technology Research Centre, says you need to know exactly what your technology supplier is doing with client data.
Speaking during the latest FTAdviser On Air video, sponsored by Intelliflo, he explained that there is a need to ensure those organisations have robust processes in place when they are sharing data. “That is really a hygiene factor in the selection of any supplier.”
It is worth remembering that with IT contractors one of the largest fines ever in the financial services area was imposed when an IT contractor lost a laptop with a frightening amount of customer data on it, warned Mr McKenna. “Understand what your IT supplier is doing with your data,” he added.
Jane Hodges, chief operating officer of Alexander House Financial Services, said: “If you are talking about client data, and it is your client data, and you are the data protection officer for it, then you have to make sure that data isn’t going anywhere it shouldn’t be.
“Using an IT guy from just down the road because somebody down the pub told you it was a good idea is not enough for a proper practice to be looking at.”
She pointed out that due diligence is crucial, getting that company to tell you how they are storing it and accessing it. “If they really are getting client data then you may need to do more about making sure they understand the context of how that data has been procured and how they can and can not use it.”
During the video, Nick Eatock, executive chairman of Intelliflo, said an electronic signature is a totally legitimate way of an adviser recording an agreement with a client.
In terms of when will more suppliers in the chain and platforms accept electronic signatures, he added: “We are absolutely moving in the right direction, but it is not perhaps as fast as many of us would like.”
emma.hughes@ft.com
