Financial Advisors and Cybersecurity Requirements
Cybersecurity is a critical concern for financial advisors, as they handle sensitive client information and financial data. The Financial Industry Regulatory Authority (FINRA) has established specific cybersecurity requirements for financial advisors to protect against cyber attacks and prevent data breaches. Below, we will discuss these requirements and how a managed service provider can assist financial advisors in meeting FINRA cybersecurity requirements
FINRA Cybersecurity Requirements for Financial Advisors
FINRA Rule 3110(a)(7) requires financial advisors to establish and maintain a cybersecurity program to protect their sensitive data and client information. The cybersecurity program should be designed to:
- Identify and assess cybersecurity threats and vulnerabilities
- Develop and implement cybersecurity policies and procedures
- Detect, respond to, and recover from cybersecurity incidents
To comply with FINRA cybersecurity requirements, financial advisors should have a comprehensive cybersecurity program that addresses potential threats and vulnerabilities. This program should include policies and procedures for employee training, access controls, data encryption, and incident response.
Types of Attacks Financial Advisors Are Subject To
Financial advisors face a variety of cyber threats, including phishing attacks, malware infections, ransomware attacks, and distributed denial-of-service (DDoS) attacks. Phishing attacks are the most common type of cyber attack, and they involve tricking employees into clicking on a malicious link or providing sensitive information.
Malware infections are another common type of cyber attack, and they involve infecting a computer or network with malicious software. Ransomware attacks involve encrypting a victim’s data and demanding payment to restore access. DDoS attacks involve overwhelming a network with traffic to disrupt normal operations.
Data That Could Be Compromised
Financial advisors handle sensitive client information, including social security numbers, financial account numbers, and personal identification information. A data breach could result in the loss or theft of this information, which could be used for identity theft or fraud. The financial advisor could also face legal and reputational damage from a data breach.
King Street Technology and FINRA Cybersecurity Requirements
King Street Technology can assist financial advisors in meeting FINRA cybersecurity requirements by providing a comprehensive cybersecurity program that includes:
- Risk assessment and vulnerability testing
- Security policies and procedures development and implementation
- Ongoing employee training and awareness
- Network monitoring and management
- Incident response and disaster recovery planning
By outsourcing their cybersecurity to King Street Technology, financial advisors can ensure that they have a comprehensive cybersecurity program that addresses potential threats and vulnerabilities. King Street Technology can also provide ongoing support and monitoring to ensure that the program remains effective and up-to-date with the latest threats and trends.
How King Street Technology Can Help Your Practice
Financial advisors must comply with FINRA cybersecurity requirements to protect their sensitive data and client information from cyber threats. To meet these requirements, financial advisors should have a comprehensive cybersecurity program that includes policies and procedures for employee training, access controls, data encryption, and incident response. King Street Technology can assist financial advisors in meeting FINRA cybersecurity requirements by providing a comprehensive cybersecurity program that includes risk assessment, security policies and procedures, ongoing employee training, network monitoring, and incident response planning.
Contact us today via email@example.com or call (844)546-4787 to find out how we can assist your financial advisory firm meet FINRA requirements and protect your clients data…and your practice.