Development of technology in regards to policing and communication has paved way for various reforms in different sectors of the economy. Industrial development is no doubt a replica of technological advancements in accounts presentation and financial control areas. This paper sums up two vital Acts that are as a result of technological advancement in the communication industry: Federal Information Security Management Act (FISMA) and Financial Service Modernization Act (FSMA).
The Federal Information Security Management Act (FISMA) is a US legislation that offers a clear data security definition and offers a framework that is tailored to protect American data, its operations as well as physical assets from any impositions that may occur from natural or fabricated threats.
The government of the US signed the bill in 2002 as part of the Electronic Government Act (Gidiere, 2006). The law also gave directives and power to different stage agencies to take control and to ensure Federal Government data is kept safe. In the first place, state agencies have to carry out annual review of information through the officials on different security programs with an aim of keeping risks low or mitigating them at a lower cost.
Response to information security details also had to be timely, easy and efficient (Gidiere, 2006). Use of technology is dissemination and storage of information at a lower cost led to the initiation of FISMA. Information that is stored in computers is still under the state agencies control, and in this relevance, different materials would be the property of the US government.
The Federal Information Security Management Act (FSMA) was approved by the 106th States Congress. US officials also signed the agreement in November 1999, with an aim of repealing parts of the Glass-Steagall Act (GSA) of 1993 (Jentzsch, 2006). GSA also prohibited financial institutions from offering insurance, commercial banking and investment opportunities or services.
A high competition was generated because of FSMA among commercial banks, security companies and insurance companies. The act paved way for merging of commercial financial institutions and investment companies and it created financial service industry. With enhancement of information technology, it was therefore possible for individual investors to carry out their intra and interbank money transfer services efficiently and at a lower cost than before (Jentzsch, 2006).
Additionally, communication connection between financial institutions and commercial banks had been enhanced thus, compelling the government of the US, to create a platform for consolidation between other financial organizations and banks.
Gidiere, P. S. (2006). The federal information manual: How the government collects, manages, and discloses information under FOIA and other statutes. Chicago: American Bar Association.
Jentzsch, N. (2006). The Economics and Regulation of Financial Privacy: An International Comparison of Credit Reporting Systems. Heidelberg: Physica-Verlag Heidelberg.