ASIC proceedings a threat to directors

ASIC has recently commenced proceedings against advice business, RI Advice, for alleged failure to have adequate cyber security systems after a licensee cyber breach incident.

ASIC cyber security
Posted on: September 8th, 2020 onPlatinum

ASIC has recently commenced proceedings against advice business, RI Advice, for alleged failure to have adequate cyber security systems after a licensee cyber breach incident.

ASIC alleged that where authorised representatives locations suffered a cyber breach, the advice business should be responsible, not just the authorised representatives.

If successful, a civil penalty up to $12 million could be applied.

This action could expose company directors, questioning their knowledge and management of the cyber security applied by the business conducted by authorised representatives. This begs the question – do you understand where all representatives client data (not necessarily in financial planning software) is stored and backed up? Do you know how users sign into devices, what security they have on their phone systems and if they have replaced a photocopier in the last few years? These are just a few of the questions you would expect ASIC to ask.

Advice businesses in the near future will be expected by ASIC to implement adequate cyber security systems across all licensees, and these systems will need to be signed off by an independent expert in cyber security. Any breach of a location will need to be reported by the advice business itself, no matter how small.

It has become clear that licensees should stop relying on advice software providers and advice businesses to close this risk and advice businesses should stop relying on advice software providers and licensees to protect their asset.

IT company onPlatinum believes it is in the ideal position to assist Advice businesses, their representatives and ultimately their Directors navigate through these difficult circumstances.

With origins in financial services, onPlatinum ICT provides and manages IT solutions for a range of stockbrokers, funds management companies, insurance companies, financial planning, accounting and lawyers as well as a broad range of Australian businesses.

As one of Australia’s leading ICT and cyber security businesses, onPlatinum are uniquely positioned to help advice businesses with a Cyber Security Risk Assessment that identifies the firm’s security posture – and any exposure or potential cyber security risks.

What does onPlatinum offer?

onPlatinum helps navigate and remediate most significant risks, in three simple steps:

  1. Understand – we will provide an online assessment link for easy distribution to licensees to understand the risks.
  2. Document – we will deliver customised licensee reports back to the business to document their cybersecurity posture.
  3. Remediate – facilitate a one hour expert consultation with the licensor and/or each licensee to map out a remediation plan.

Protect your brand, data and people with onPlatinum’s Cyber Security Risk Assessment. Click here for more information on what a data breach could mean for your business.

For pricing and further information, please contact us on 1300 428 667. Protect your company today.

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