Cybersecurity still worries RIAs the most: Study

Twenty percent of firms say they were victims of a cyberbreach during the past 18 months

Jun 24, 2016 @ 12:50 pm

By Tanvi Acharya

Cyberthreats continue to be the biggest concern for registered investment advisers, with 88% of firms identifying “cybersecurity/privacy/identity theft” as their main worry, according to a new compliance testing survey.

The survey — conducted by the Investment Adviser Association (IAA), ACA Compliance Group and the asset management holding company OMA — also found that anti-money laundering, anti-bribery and anti-corruption concerns are gaining greater importance among RIAs.

The survey showed increased efforts to battle cybersecurity, as the number of firms with formal, written, standalone cybersecurity programs increased by 29% from last year. And over the past 18 months, nearly 20% of the adviser firms were victims of a cybersecurity breach, according to the survey.

Some other areas of concern for the firms were advertising/marketing, custody and fraud prevention.

“The results of our 2016 survey should give investment advisers a strong sense of the compliance areas they may want to focus on,” IAA Assistant General Counsel Sanjay Lamba said in a release. “Our hope is that our findings will assist firms in benchmarking their compliance practices against other firms.”

Most firms have increased their compliance testing, according to the survey, with nearly half of them spending between $100,000 and $500,000 annually on compliance-related costs.

0
Comments

What do you think?

View comments

Most watched

INTV

How advisers can be a gamechanger for women investors

Why women defer to men when it comes to finances and how advisers can combat this phenomenon and make a difference for female investors, according to Heather Ettinger, founder and CEO Luma Wealth Advisors.

Events

MassMutual's LaPianna: Creating better conversations with your clients

What's the secret to building better client relationships? MassMutual's Paul LaPianna says it all begins with great conversations.

Latest news & opinion

Schorsch, AR Capital to pay $60 million to settle SEC charges

The former REIT czar and his firm wrongfully obtained millions linked to REIT mergers.

CFP Board postpones enforcement of its revised fiduciary standard

Board's new Code of Ethics and Standards to be enforced next June, in line with the SEC's Reg BI

Charles Schwab reportedly in talks to buy USAA brokerage, wealth management business

The deal would net Schwab roughly $100 billion in new assets.

Advisers scramble to help retirees navigate looming Fed rate cut

The Fed's first interest-rate cut in a decade has advisers warning against chasing the bait of risk over safety.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print