Court finds RI Advice failed to adequately manage cybersecurity risks
The Federal Court has found that financial services licensee, RI Advice, breached its license obligations when it failed to have adequate risk management systems to manage its cybersecurity risks.
After commencing proceedings in 2020, the Federal Court has found that financial services licensee, RI Advice, breached its license obligations to act efficiently and fairly when it failed to have adequate risk management systems to manage its cybersecurity risks.
RI Advice has been ordered to pay $750,000 towards ASIC’s costs. The finding followed an earlier ruling in which RI Advice was ordered to pay a $6 million penalty for failing to ensure its authorised representative provided appropriate financial advice.
First of its kind in Australia, the ruling came after a significant number of cyber incidents occurred at authorised representatives of RI Advice between June 2014 and May 2020, resulting in the potential compromise of confidential and sensitive personal information. The ruling could set legal precedence across all industries.
Australian Securities and Investments Commission (ASIC) deputy chair, Sarah Court, said, “it is imperative for all entities, including licensees, to have adequate cybersecurity systems in place to protect against unauthorised access.”
Entities of all sizes must adopt an enhanced cybersecurity position and deploy advanced solutions to protect from sophisticated threats and boost cyber resiliency. This is especially important for small to medium enterprises, who are seen as easy targets for cybercriminals.
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As one of Australia’s leading ICT and cyber security businesses, onPlatinum are uniquely positioned to help entities with a Security Risk Assessment that identifies the firm’s security posture – and any exposure or potential cyber security risks.
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Protect your brand, data and people with onPlatinum’s Security Risk Assessment. Contact onPlatinum for more information.