Corporate Structure and Account Security

LOM Corporate Structure

The LOM Financial Group is a publicly-held, international financial services company, providing a complete range of investment services and products through its regulated subsidiaries in Bermuda, the Bahamas and Grand Cayman. In business for over 25 years (since 1992), LOM provides custody, brokerage, online trading, asset management, corporate finance and family office services to its primarily high net-worth individual and institutional customers located around the world.

All transactions are cleared by Global Custody & Clearing Limited (GCCL) in Bermuda, which provides custody, clearing, trading and administrative services to LOM’s affiliated companies.  Also located in Bermuda are LOM Asset Management Limited (providing discretionary investment management, proprietary research, and administration of LOM’s award winning mutual funds), LOM Corporate Finance Ltd (providing corporate finance and Bermuda Stock Exchange listing services), and LOM Nominees Limited and Donald & Co. Limited, used to hold client assets in nominee name.  LOM (UK) Limited provides IT services and accounting support.

LOM Financial Limited is the parent to all of the operating companies and is publicly traded on the Bermuda Stock Exchange (symbol: LOM BH). Bloomberg ID. BBG000DQX162 

Regulation and Controls

LOM’s Compliance and Finance departments monitor the Group’s activities and implement policies and procedures necessary to protect both the firm and its clients, and to ensure compliance with relevant regulations and industry standards.   The departments manage counterparty risk, internal audit, internal controls and security matters, client credit and margin lending, client account documentation and due diligence, anti-money laundering and anti-terrorist financing policies and procedures, legal matters, reconciliations, risk management and compliance with government and industry regulations. We have committed substantial resources towards ensuring your account security and safety.

LOM affiliates are licensed and regulated by securities regulators in Bermuda and the Bahamas, and adhere to strict investment and AML/ATF regulations in their respective jurisdiction.

Bermuda

Global Custody & Clearing Limited, LOM Financial (Bermuda) Ltd., and LOM Asset Management Ltd. are licensed to conduct Investment Business by the Bermuda Monetary Authority.

Bahamas

LOM Financial (Bahamas) Ltd is regulated by the Securities Commission of the Bahamas

Cayman

LOM  Financial (Cayman) is a branch of LOM Financial (Bermuda) Limited, and is regulated by the Bermuda Monetary Authority.

Auditors

LOM Financial Limited and all of its affiliated companies are audited on an annual basis by Deloitte. The company produces annual financial statements which are filed with the Bermuda Stock Exchange and our local regulatory authorities.

Professional Memberships

Global Custody & Clearing Limited has been a listing sponsor and trading member of the Bermuda Stock Exchange since 1995.

LOM is approved as a Qualified Intermediary for the holding of U.S. assets, and is registered as a participating foreign financial institution under FATCA.

LOM’s asset management division employs a number of professionals holding the Chartered Financial Analyst (CFA) designation.  Many of LOM’s in-house mutual funds frequently hold 4 or 5 star Morningstar ratings.

Custody and Security of Assets

LOM uses an international network of top tier global banks for the sub-custody of client assets. All client assets are held in trust on behalf of customers.  Client cash and assets are segregated on LOM’s books, which are reconciled daily and regularly audited. Unlike a Bank, Client cash and assets are not carried on LOM’s balance sheet.  LOM accounts for and tracks client assets through its investment management software, developed by a leading provider for the London financial community, and is independently audited on an annual basis to ensure separation of assets.  We are also able to arrange a special segregated account with one of our custodians, State Street Bank & Trust Company, for client accounts greater than US$25,000,000 

Cybersecurity

LOM takes the issue of cybersecurity very seriously. We have invested in training our IT Staff in an accredited cybersecurity program, and our CIO is a GSLC (GIAC Security Leadership Certified).  We conduct regular ethical penetration tests of our public-facing website along with internal databases and systems to highlight and remediate any issues. We encrypt our client information and sensitive transactional information, at rest and in transport, to protect it from disclosure or discovery.

We further monitor our network for unauthorised software and hardware, and conduct vulnerability scans of systems and passwords in order to adhere to CIS (Centre for Internet Security) guidelines. We adopt a regular patching routine of systems at LOM.  Perhaps most importantly (as most breaches are human based), our staff undergo regular security awareness training, and we conduct phishing exercises on them in order to ensure that they are not prone to introducing vulnerabilities, viruses or malware onto our network.

Global Network

LOM clears its own trades, and provides full time in-house Research, Compliance and an active Corporate Finance team. LOM is able to execute transactions in virtually every market in the world. LOM deals in 28 different currencies worldwide, and in all classes of securities, including equities, bonds, options, mutual funds, futures, commodities, and foreign exchange. Professionalism and service are the cornerstones to LOM’s approach to business.

Insurance

LOM maintains a Financial Institutions policy underwritten by several syndicates at Lloyds.   These include Bankers Crime and Lloyds Electronic & Computer Crime policies.

The information contained in this article is for information purposes only, and represent the views of the author. It is not intended as specific investment or financial advice, or a recommendation or solicitation to buy or sell any security. Any investments or strategies listed in this article may not be suitable for all investors. Past performance is not indicative of future performance, and as with any investment, prices may fluctuate. It is recommended that advice is sought from a qualified investment professional prior to implementing any financial plan. LOM has made every effort to ensure that the contents herein have been compiled from sources believed reliable, however LOM does not warrant the accuracy, adequacy, timeliness, or completeness of this information expressly disclaims liability for errors or omissions in this information.