For the sixth year in a row, cybersecurity remains the biggest compliance concern at registered investment adviser firms, according to a survey of 369 RIA firms by the Investment Adviser Association and ACA Compliance Group.
Cybersecurity is the "hottest" compliance topic among 83% of survey respondents, with 70% indicating that their firms increased compliance testing in this area over the past year, the organizations said in a joint release.
A higher percentage of survey respondents reported doing penetration testing (80% vs. 73% last year) and phishing-scam testing (75% vs. 66%). A majority reported having cybersecurity insurance.
After cybersecurity, compliance professionals ranked issues relating to advertising and marketing as the second hottest compliance topic (28%), followed by issues relating to data privacy (23%).
The 2019 IAA survey, conducted online throughout May, also touched on issues including custody, best execution, ethics, gifts and entertainment, solicitations and referrals, fees and expenses, and whistleblowing.