The Financial Planning Association of Australia (FPA) has announced the release of a cyber security guidance for members, pointing to its importance amid increasing demand for advice firms to protect their businesses and client data from potential breaches.
According to the FPA, this will be the first of a series of cyber security-focused guides to help members meet their ethical and regulatory obligations to protect clients.
Specifically, topics covered will include the importance of cyber security, regulatory and legal obligations, examples of advice-related cyber security issues, practical mitigation steps, and links to additional resources.
Speaking on the new resource, FPA chief executive officer Sarah Abood told ifa that professional associations play an important role in ensuring members are fully equipped to mitigate potential risks for the benefit of their clients.
“It is therefore critical that the FPA takes the lead in safeguarding advice practices and their sensitive client data. This guide will be a critical first step in helping financial planning firms become more confident in protecting their businesses from cyber security threats,” Ms Abood said.
She understood that cyber security can be difficult to navigate with confusing software and technology jargon but warned that cyber risk education is essential for the threat it poses to businesses, the success of individual financial planning practices, and the security of clients’ financial information.
Moreover, Ms Abood said professional associations should be thinking about offering training to members and licensees given the rise in cyber crime in Australia.
“We don’t want cyber security to be one of those things which is left to later or is seen as too confusing to deal with. Hence the need for guidance and support for members,” she continued.
“We all know someone who has been hacked or read about it in the media happening to big companies.
“These sorts of attacks can turn peoples’ lives upside down, and when it is your business and your livelihood at stake, you want to do anything you can to protect your clients’ information and your business,” Ms Abood concluded.
