Corporate Structure and Account Security
By LOM | April 15, 2015
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.
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.
Global Custody & Clearing Limited, LOM Financial (Bermuda) Ltd., and LOM Asset Management Ltd. are licensed to conduct Investment Business by the Bermuda Monetary Authority.
LOM Financial (Bahamas) Ltd is regulated by the Securities Commission of the Bahamas
LOM Financial (Cayman) is a branch of LOM Financial (Bermuda) Limited, and is regulated by the Bermuda Monetary Authority.
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.
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
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.
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.
LOM maintains a Financial Institutions policy underwritten by several syndicates at Lloyds. These include Bankers Crime and Lloyds Electronic & Computer Crime policies.