Trade Errors and Their Risks Originally published October 13, 2021. Last updated July 23, 2024. A primary duty of advisors is the faithful execution of trade orders on behalf of clients. If an advisor makes a mistake executing a trade order, a client could suffer a loss that may lead to legal or regulatory penalties [...]
Read MoreTop Cyber Breaches of 2023 Cyber breaches were in the news a lot in 2023. In fact, 2023 was one of the most significant years on record for cybersecurity incidents. Even if you and your advisory business didn’t have a hack, you may have still felt an impact. With everything from common office tools to [...]
Read More15 Best Cyber Security Best Practices for RIAs Cyber attacks pose a significant risk to financial businesses, costing companies millions and damaging reputations. The tactics used by hackers are always evolving, so it’s important to keep up with the currently recommended best practices. However, many firms fall behind — and that’s where a problem can [...]
Read MoreAdvisor-Client Communication Tips Good communication in the advisory business is essential for client success as well as the health of your business. When communication between the advisor and the client breaks down, misunderstandings can multiply. Such misunderstandings can strain relationships, decrease client satisfaction and increase the possibility of a claim. To minimize these risks, it's [...]
Read MoreAll About Social Engineering in Cyber Crime Whenever the topic of cyber crime comes up, leaders at organizations everywhere often have one question: How do fraudsters and hackers convince so many people to hand over their passwords? The simple answer is social engineering. People are social by nature, with a decision-making process that’s highly responsive [...]
Read MoreThe Risks of Internal Theft vs External Theft for Financial Professionals The topic of external theft is familiar for many advisors. Assets you oversee are attractive to criminals and so is the personally identifiable information of your clients, investors and plan participants. Stories abound of fraudsters and internet hackers stealing funds from financial firms and [...]
Read MoreWhy Cyber Claims Cost So Much Ask anyone who’s been hacked and they’ll tell you: Cyber claims are expensive. In the advisory space, overall costs regularly exceed $250 per exposed record. With the volume of records involved, these costs quickly add up. Many claims cost over $1 million today. But many professionals still wonder where [...]
Read MoreWhat’s the Difference Between E&O, Fidelity Bonds and Cyber Liability? When you face a complaint involving your advisory business, insurance can help you achieve a better outcome. But risks come in all shapes and sizes — and so do the policies that protect against them. A competent broker will usually recommend E&O, Fidelity Bonds and [...]
Read More6 Steps You Have to Take to Protect Your Plan Since the days of the Pony Express, financial services businesses have faced elevated risk. The only difference today? The train robbers have been replaced by cyber criminals. In this new Wild West of digital finance, it’s important for plan fiduciaries to be ready. With October [...]
Read MoreHow to Minimize Your Liability for New SECURE 2.0 Investors and Sponsors As many retirement plan advisors know, the retirement landscape is changing. Recent Setting Every Community Up for Retirement Enhancement Act revisions (SECURE 2.0) are designed to spur more employers to create plans and more workers to participate in them. The likely result over [...]
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