Now, let’s talk about something that’s not as fun but just as important — regulations and compliance. It’s not the most exciting topic, but it’s mandatory, and you might get into legal issues if you don’t pay attention to current regulations.
The financial industry is a maze of regulations, so you might be familiar with the game here. For most of these laws, non-compliance might result in big fines.
Let’s start with the most common topic first: privacy and security compliance laws.
The transfer of data is unavoidable when you’re required to do most things online. When you handle a certain volume of sensitive data, you’re responsible for protecting this data against misuse and cybercriminals.
The law and regulations around sensitive data differ depending on where your customers reside. Make sure you check your state’s privacy laws to get all the details.
If, for some reason, you have new clients from another state, you should also check with the regulation in those states to make sure you’re not violating any rules.
For the most part, however, the only thing you need to pay attention to is the CAN-SPAM Act. This regulation prevents you from sending unsolicited marketing emails. You need a written agreement that people want to receive emails from you when sending a commercial email. You can do this by creating an opt-in, where people are supposed to fill out a form to get your email newsletters.
In addition, make sure that people can opt out of marketing emails easily. If you use email marketing tools, such as MailChimp, ActiveCampaign, or MailerLite, you wouldn’t have to worry about this, as the unsubscribe button is already implemented in the email. These email service providers also have a lot of automation options, such as granular segmentation options and call-to-action buttons, so you can run your campaigns from one tool.
And then there are advertising regulations, which apply to all businesses. You need to make sure your marketing materials are accurate and non-misleading. You can’t make false promises or use deceptive tactics to attract clients. It sounds like common sense, but some people do use sketchy tactics just to get more clients who won’t feel satisfied with their financial service anyway.
And remember, when in doubt, it’s always a good idea to consult a legal expert. They can help you understand the regulations and ensure you’re on the right side of the law.