Clients have the ability to aggregate personal financial information on third-party platforms to assess their financial position. This data aggregation creates valuable opportunities for clients but also has the potential to put their data at risk if it is misused, mishandled or misappropriated. An individual’s personal information is invaluable, and its protection is of paramount importance.

What are the best steps to take when it comes to the protection of investor data? SIFMA is stepping out and taking a stand by releasing these Data Aggregation Principles.

The Principles cover four areas:

1. Access
2. Security and Responsibility
3. Transparency and Permission
4. Scope of Access and Use

Taken together, the SIFMA Data Aggregation Principles provide a path to create a more secure chain that will help to better protect clients’ financial data while still providing the holistic experience they are looking for.

cleverDome agrees with SIFMA – data security is something that needs to be done together, proactively and collectively, as an industry working with financial services firms and financial technology companies that access and use client data. As an industry we need to lead with standards and technology that can help ensure client information is safe when they allow third parties access to take their data. Firms have a huge responsibility to educate their clients, so they understand the potential risks that accompany any sharing of their personal information.

Additional resources for financial advisory firms and financial services firms’ clients are available here: http://www.projectinvested.com/data-aggregation/