One final issue involves the security of e-mail communications. Much has been written about this subject. Yet little is done to protect client information inside unencrypted e-mails. For example, a financial advisor might e-mail one of his clients with an attachment showing the client's net worth, list of assets, etc. This type of e-mail is highly vulnerable. If you work with a broker/dealer, chances are there is an e-mail solution already in place and available for use that has security features. If you are an independent advisor, it may be up to you to install a system to protect your firm and your clients' private information. Encrypting e-mails is somewhat unwieldy, since it requires the recipient to have the key to unencrypt the message. If you use Microsoft Outlook as your e-mail portal, for example, you would need to send a certificate file (a ".CER" file) to the recipient, who then must add this to your contact record in his own version of Outlook in order to see the messages that follow. For elderly clients or those unfamiliar with the Internet and e-mailing, this could be cumbersome to say the least. The work-around is to avoid sending personal client data via e-mail or to separate the data into several e-mails. Another option is to add a secure lockbox (or vault) to your Web site and upload such documents there for client viewing. This method ensures encryption and password security. Most Web site providers for financial advisors provide lockboxes or vault technology (vendors such as http://www.advisorsquare.com, http://www.lightport.com and http://www.advisorsites.com).
Your choices for information security should reflect your need to protect your firm's information as well as your client's in a secure and efficient manner.
David Lawrence, AIF (Accredited Investment Fiduciary), is a practice efficiency consultant and is president of David Lawrence and Associates, a practice-consulting firm based in Lutz, Fla. (www.efficientpractice.com). David Lawrence is a much-sought-after public speaker on a variety of leadership, financial and technical topics. For details, visit www.davidlawrencespeaks.com.