Cybersecurity remains top RIA compliance concern

Nearly two-thirds of firms have increased testing in the area

Jul 25, 2018 @ 1:57 pm

By InvestmentNews

The biggest compliance concern at RIA firms is cybersecurity, according to a survey of 454 registered investment advisory firms conducted by the Investment Advisers Association and ACA Compliance Group.

For the fifth year in a row cybersecurity was the No. 1 concern, cited by 81% of survey respondents, followed by advertising (29%) and custody (28%). Issues related to privacy was the fourth major concern.

Regarding cybersecurity, nearly two-thirds of respondents indicated that their firms increased compliance testing in this area over the past year.

(More: What the fastest growing RIAs have in common)

Compliance professionals at 454 investment adviser firms of all sizes participated in the survey: 30% at firms managing less than $1 billion, 45% at firms managing $1 billion to $10 billion, and 25% at firms managing more than $10 billion. Two-thirds (64%) of firms reported having 50 or fewer employees, which is consistent with industry data showing that the vast majority of investment advisers are small businesses, IAA said in a release.


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