Advisors Aware But Unprepared for Cyber Risks

by Staff in The Daily Brief

Cybersecurity is one of the biggest compliance issues facing registered investment advisors today, and the regulators are making it a top priority. A new Financial Planning Association survey, sponsored by TD Ameritrade Institutional, found that while seven in 10 advisors are aware of the risks associated with cybersecurity, less than a third (29 percent) say they are fully prepared to manage and mitigate those risks. Less than half (44 percent) of the 1,000 advisors surveyed fully understand the issues and risks associated with it. Only about a quarter of advisors say they know what’s required from the Securities and Exchange Commission’s Office of Compliance Inspections and Examinations. "The reality is cyber fraud is pervasive and advisors cannot eliminate the threat, but they can reduce their risk. The more that advisors make themselves familiar with safeguarding systems, adopt best practices and create a detailed security plan, the more they can protect their firms and clients," said Bryan Baas, TD Ameritrade Institutional's director of risk oversight and control.  MORE


Mark Brown