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The evolving dynamics of the institutional investment industry form a complex dance. Everything adds to the intricate pattern: market changes, investment managers, investor needs, institutional partnerships, economic patterns ... and, yes, regulatory and compliance controls around security and data privacy.

The last may not sound glamorous, but regulatory and compliance controls are crucial: they keep bad actors from disrupting the flow of the dance. At Backstop Solutions Group, we are proud to announce that we have successfully completed the System and Organization Controls 2 (SOC 2) examination and audit, verifying that we are in step with this important standard set by the American Institute of Certified Public Accountants (AICPA).

The Value of a Third-party Assessment

SOC 2 is a U.S.-based standard for service organizations that addresses internal controls in the five areas of Security, Availability, Processing Integrity, Confidentiality, and Privacy. A SOC 2 report gives assurance to auditors or other organizations that a company can protect and secure users’ data, confidentiality, and privacy. Typically, reports focus on the one or two areas that most closely align with a business’ practices.

Since its inception, Backstop Solutions has been committed to protecting and securing user data and has put in place processes and protocols to do so. While we knew that our controls were strong, we wanted to give our clients additional assurance and confidence. We therefore underwent a SOC 2 audit focusing on Security and Availability since we serve our clients via a cloud-based platform. We successfully completed the intensive examination required and received a SOC 2 Type 1 report at the end of June. The Type 1 report describes our organization’s system and affirms the suitability of the design of our controls.

In describing the value of the SOC 2 report, Michael Neuman, Vice President of Information Security, states, “Having a third party assess and report on our controls demonstrates the maturity of our system and processes and verifies our alignment with key industry standards. We can now share that information with our clients and prospects to show clearly that our controls are both meaningful and robust.”

Business Benefits of a SOC 2 Report

If you’re an institutional investor, your organization can benefit very directly from Backstop Solutions’ SOC 2 report:

  • Enhance trust and confidence. The SOC 2 report provides a strong level of trust and confidence via objective and trusted third-party validation that data at Backstop Solutions is secure, confidential, and private.
  • Increase business agility. The SOC 2 report readily confirms the completeness of Backstop’s controls, giving you the background information you need to swiftly take advantage of Backstop’s suite of solutions.
  • Streamline due diligence. It is resource-intensive to do due diligence on potential business partners. The SOC 2 report hands you all the primary information you need in a standardized format, cutting down on the time, money, and effort required to complete due diligence.
  • Focus on your core business. With Backstop Solutions’ SOC 2 report providing confirmation of security and availability controls, you can shift your focus to where it needs to be: researching, managing, and investing to meet your company’s goals.

Security and Availability: Top Priorities at Backstop

The SOC 2 report is just the latest example of the many ways we demonstrate our dedication to regulatory and compliance standards in the industry. For instance, Backstop Solutions is already preparing for another SOC 2 audit to take place in 2020 that will result in a Type 2 report. The Type 2 report examines an organization’s processes and practices over a range of time to confirm the operating effectiveness of the controls.

Neuman affirms, “As we continue to expand our services and the number of institutional investment firms we partner with, we plan to become more and more robust with regard to regulatory and compliance standards. We are committed to evolving with the changing marketplace and to protecting our clients’ data to the highest degree. Security and availability have always been and always will be top priorities at Backstop Solutions.”

By Michael Neuman, VP of Information Security