Collaboration will help independent financial advisers ensure data is protected ahead of legislation overhaul in April ...
Stone Group, the technology solutions provider and the UK’s largest independently-owned hardware manufacturer, has partnered with managed ICT services company Calyx to help businesses defend themselves against extra liabilities ahead of the changes to the Data Protection Act 1998 in April, which will see fines for insufficient care with sensitive data rise to £500,000.
The partnership will result in the development of encrypted hardware products and services and a dedicated online portal – http://calyx.stonecomputers.com – for financial services organisations. Applying its public sector experience to this new market, Stone Group is supplying the encrypted hardware units to enhance the managed services provision Calyx delivers to its extensive financial services customer base.
Calyx is an independent provider of managed ICT services across the UK and Ireland and has comprehensive experience in the financial market, supporting organisations such as KMPG, Permanent TSB and Openwork, the Independent Financial Advisors (IFAs) subsidiary for Zurich. Stone Group specialises in the supply and support of ICT and audio-visual solutions to schools, colleges, universities, local government, the emergency services, the NHS and MoD.
Commenting on the partnership with Stone Group, Rich Garner, Service Delivery Manager (Openwork) at Calyx, states, “Calyx was tasked by Openwork, which consists of 3,500 IFAs and financial organisations as a directly authorized franchise network, to deliver an encrypted platform which ensures protection for the IFAs should a laptop be misplaced or stolen. Whilst Calyx is able to offer infrastructure support and market know-how, we needed a reliable source for the hardware itself – having previously worked alongside Stone Group, I was confident of its capabilities to meet this challenge. Flexibility of approach sets the company apart, and I knew that Stone Group was the correct choice to deliver this project in a timely manner.”
This new offering comes ahead of the upcoming Data Protection Act fines overhaul, which becomes active on April 6th this year. The Information Commissioner’s Office (ICO) will be able to make organisations to pay up to £500,000 as a penalty for serious data breaches, in a move to protect citizens’ data in our increasingly online society. Matt Knowles, Group Financial Services Manager, Stone Group, comments, “As recent high profile examples show, data protection is particularly important in the financial sector, and under the new guidelines it will be very easy for an organisation to fall foul, even unknowingly, and become liable to potentially crippling fines.”
Garner adds, “For IFAs, it is also about reputation and trust. In partnership with Stone Group, we are offering a solution which gives financial organisations the confidence that their clients’ data is protected to the highest level.”
Through the scheme, two laptop options and a desktop option are available with AS 256-bit hardware encryption (the Advanced Encryption Standard (AES) adopted by the US government) designed to meet both FSA and FIPS compliance. These devices are available to purchase or lease via the dedicated Openwork Financial Advisers portal. Knowles adds, “The web portal is a key part of the offering for Openwork, as it allows us to reach a large number of prospective customers efficiently. Via the portal, IFAs can fill out an application for leasing equipment quickly and easily, which is a vast improvement on the laborious paper-based application usually required.”
Knowles continues, “The leasing option is very important for these organisations. Most IFAs are either sole traders or a Limited company meaning that it is tax beneficial for them to lease such hardware rather than buying outright from their capital allowance.”
Garner adds, “Openwork also wants to discourage IFAs from using outdated hardware that is over five years old- as old equipment can put data protection strategies at risk - so leasing initiatives such as this gets them into the habit of refreshing technology every couple of years. This in turn reduces spend on extraneous IT support costs.”
The encrypted hardware project can also be placed in the larger recycling picture at Stone Group, which takes a ‘cradle to grave’ approach to its products. Knowles comments, “At the end of the product’s lease life we will irretrievably clean the data and recycle the unit ourselves using our own in-house plant. We’ll also recycle any displaced equipment, meaning that IFAs receive an all-round data service”
Knowles concludes, “The collaboration with Calyx represents an important step change for Stone Group, and access to a market we have so far not approached. Combining our experience in protecting and handling particularly sensitive public sector data, with the financial services market experience of Calyx, a hugely attractive service can be provided to financial institutions that ensures absolute peace of mind in data protection.”