Xtiva Financial Systems Successfully Completes SSAE-16 Audit

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After 6 straight years of SAS 70 audits, Xtiva has converted over to the new SSAE 16 standard

Xtiva Financial Systems, a leading provider of enterprise compensation solutions for the financial services industry, today announced that the control procedures and compliance for it two data centers have been verified in a Service Organization Control report (SOC 1) under the terms of the Statement on Standards for Attestation Engagements No. 16 (“SSAE 16”). This most recent audit marks the seventh consecutive year Xtiva has distinguished itself through the successful completion of its data center's SSAE 16/SAS 70 Type II audits. The audit was performed by McGladrey & Pullen, LLP, a nationally recognized independent auditing firm.

SSAE 16, developed by the Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA), replaces the Statement on Auditing Standards No. 70 (SAS 70), which was the standard used for reviewing service organization control processes for nearly two decades. The requirements of SSAE 16 are very similar to the SAS 70 requirements with one main difference in the report: the inclusion of a written assertion from management regarding the design and operating effectiveness of the controls being audited. Xtiva has received SAS 70 Type II assessments since 2005.

McGladrey & Pullen performed an independent audit and extensive testing of control activities and effectiveness, with a full assessment of:

  •     Oversight by executive management
  •     Operations and customer service
  •     Development and information technology organization
  •     Human resources policies and procedures
  •     Risk assessment monitoring

"Successfully completing the audit provides our clients with a high level of confidence in the reliability and quality of the hosted solutions we deliver and the processes supporting them," said Rob Kenig, Xtiva’s Vice President of Operations. "The SSAE 16 audit provides independent and validated attestation of the effectiveness and appropriateness of Xtiva’s processes and controls that support our entire business operation including our primary and alternate data centers as well as our internal development, support processes, and overall business controls. Having our IT infrastructure in a SSAE 16-audited data center is an absolute requirement in our business.”

The SOC 1 was prepared using the “inclusive method” that incorporated reviews of relevant Xtiva service partners, mitigating the need for Xtiva customers to collect additional compliance verifications. Xtiva’s clients can easily incorporate the audit report within their overall Sarbanes-Oxley compliance programs as proof that appropriate controls are in place.

About Xtiva Financial Systems

Xtiva Financial Systems is a leading provider of hosted solutions for the brokerage industry. Founded in 1998 and based in New York City, Xtiva has developed state-of-the-art technologies that enable retail and institutional broker/dealers to streamline operations, from sales compensation and production reporting to supervision of advisor licensing and compliance issues. Every day more than 250 firms and 50,000 people rely on Xtiva for compensation management and reporting services. With strategic financial service industry alliances, Xtiva is the leading provider of sales compensation solutions to the brokerage industry. The firm’s clients include American Portfolios, Ameriprise, AXA, MetLife, Mutual of Omaha, New England Securities, Sterne Agee Financial and RBC Wealth Management. For more information about Xtiva, visit http://www.xtiva.com.


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Rick Scearbo