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It seems like everything is digital these days. In a time when online income tax filing is the preferred method, why would investors need access to fax services? The answer is simple: your broker still requires paper to meet certain legal requirements, and you need assurances that your most private information gets to its destination quickly — and securely.
Working With Your Brokerage Firm Requires Hard Copies
To ensure that they meet all legal requirements, your broker must work with paper copies, which includes faxed copies. In fact, if you want to change anything (like beneficiary information), you probably need to supply it on a form. Just as you wouldn’t consider sending account numbers, passwords, or other identifying information via email, using this option to send scanned forms and other documents is just as risky.
Due to numerous regulatory and other security issues, your broker probably doesn’t use traditional fax machines any more. The machines leave sensitive information exposed, and detailed tracking of each submission is not as precise as needed. Surprisingly, the use of reputable online fax services is more secure than traditional fax machines.
You May Need to File a Complaint
If you work with a dependable financial services firm, you probably won’t have too many complaints. On the relatively rare occasions when something goes awry, the firm will probably handle your concerns fairly and efficiently. However, when your money’s at stake, you need an official option in the event that you need to escalate grievances.
If you need to file a complaint pertaining to a U.S. firm, that option is the Financial Industry Regulatory Authority (FINRA), which provides instructions on filing complaints and guides you toward the SEC website and even provides contact information for state agencies. . Once you find the most appropriate agency to handle your concerns, you’ll need to complete a form. To get that form in the hands of the right authorities, you’ll need to submit it via mail or fax.
A lack of speed is just one reason why it makes sense to avoid sending documents via postal mail, but few households have traditional fax machines hooked up to their home phone lines. In fact, many people have stopped using landlines anymore, seeing wireless smart phones as a more robust choice.
Actually, you can use that smart phone (or a tablet or computer) to send a fax through an online service . It’s fast, and it’s generally more secure than using traditional fax machine.
There are Others Reasons to Use Faxes Beyond Investing
Brokerage houses are very similar to the banking industry in that highly confidential information needs to be transmitted safely and reliably in and out of the country. The need for security is obvious to most firms — plus, there are plenty of legislative mandates that require it.
U.S. medical providers have been digitized for some time, but one provider’s data is not often compatible with others, making faxing a virtual requirement. It’s also typically a requirement in law enforcement. Additionally, one recent study of office workers indicated that 30 percent of British workers, 39 percent of German workers, and 42 percent of French workers stated that faxing was essential.
As millennials and even younger generations take over, faxing may become less prevalent. Thanks to online faxing, you don’t need an old-style fax machine anymore; but for now, you may need to use the technology occasionally.
