Protect High-Net-Worth Client Information. Demonstrate ASIC Compliance.

Stay Secure. Stay Ahead.

Implement security controls designed to address threats targeting financial advisory firms—protecting client data, meeting ASIC expectations, and demonstrating your commitment to client information security

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Security Threats Facing Financial Advisory Firms

Financial advisors manage sensitive client data and investment information that attackers specifically target:

Business Email Compromise Targeting Financial Advisors

Attackers impersonate advisors or clients to redirect investment funds, steal credentials for trading platforms, or access client account information. Financial advisory email accounts are prime targets due to the trust relationship and high-value transactions.

High-Net-Worth Client Data Theft

Client financial information, investment portfolios, personal wealth data, and transaction histories stored in financial planning systems represent valuable targets for identity theft, fraud, and corporate espionage. High-net-worth client data is particularly valuable to cybercriminals.

Ransomware Disrupting Trading & Investment Systems

Ransomware attacks can shut down critical financial planning platforms, portfolio management systems, and client communication channels. Loss of access to trading systems during market hours or inability to process client instructions creates significant operational and reputational damage.

Credential Theft for Client Accounts & Platforms

Attackers target advisor login credentials to access client portals, execute unauthorized trades, redirect investment funds, or steal confidential financial information. Compromised credentials provide direct access to client accounts and sensitive wealth data.

Sophisticated Phishing Targeting Advisors

Financial advisors receive targeted phishing campaigns impersonating ASIC, platform providers (Xplan, Iress, Class), custodians, or clients. These attacks aim to steal credentials for financial planning systems, client portals, and trading platforms.

Insider Threats from Departing Advisors

Advisors leaving practices may take client data, download investment strategies, or access systems inappropriately. Inadequate access controls, poor offboarding procedures, and excessive permissions create significant risk for client data theft during advisor transitions.

Common Security Gaps in Financial Advisory Firms

Based on security assessments across Australian financial advisory practices, these gaps are frequently identified:

Weak Authentication on Financial Planning Platforms

  • Single-factor authentication on Xplan, Iress, Class, or other platforms containing client data
  • Shared login credentials for client portals or trading systems
  • No multi-factor authentication enforcement for advisor accounts

Inadequate Email Security

  • Missing email authentication (SPF, DKIM, DMARC) allowing domain impersonation
  • No advanced phishing protection for financial services-specific threats
  • Limited security awareness training on business email compromise

Backup Gaps Affecting Portfolio Data

  • Untested backup procedures for financial planning systems
  • Backups stored alongside primary systems (accessible to ransomware)
  • No documented recovery procedures for client portfolio data

Patch Management Gaps

  • Irregular software and security updates for financial planning platforms
  • Outdated operating systems on workstations accessing client data
  • No formal patch management process for critical security vulnerabilities

BYOD Risk with Client Data

  • Advisors accessing client portfolios from personal mobile devices
  • No mobile device management or endpoint security policies
  • Client data accessible from unmanaged personal devices

Incident Response Gaps

  • No documented breach response procedures for financial data incidents
  • Unclear ASIC notification protocols for cybersecurity incidents
  • No client notification frameworks for data breach scenarios

Third-Party Platform Security Risk

  • Multiple integrated platforms (Xplan, Iress, Class, custodians) with varying security
  • Limited visibility into platform provider security practices
  • No systematic vendor security assessment or ongoing monitoring

Financial Advisory-Specific Regulatory Obligations

Financial advisors face specific cybersecurity obligations from ASIC and privacy legislation:

ASIC RG 256 Cybersecurity Expectations

ASIC's Regulatory Guide 256 sets clear cybersecurity expectations for financial services licensees. RG 256 requires financial advisors to manage cyber resilience as part of operational risk management, including implementing appropriate security controls, incident response capabilities, and third-party risk management.

  • Governance frameworks for cybersecurity risk management
  • Risk assessment and security control implementation
  • Incident detection, response, and recovery capabilities
  • Third-party and vendor security risk management
  • Regular testing and validation of security controls

ASIC Enforcement Actions Against Inadequate Cybersecurity

ASIC has taken enforcement action against financial services firms demonstrating inadequate cybersecurity practices. Firms with insufficient security controls, poor breach response, or inadequate client data protection face regulatory scrutiny, potential enforcement action, and reputational damage.

  • Regulatory investigations into cybersecurity breaches
  • Enforcement actions for inadequate security controls
  • Expectations for systematic security risk management
  • Breach notification obligations to ASIC

Client Data Protection Obligations for Advisors

Financial advisors holding client financial information face obligations under the Privacy Act (Australian Privacy Principles) and professional standards to protect client data. Security controls must be reasonable given the sensitivity of financial information and the consequences of unauthorized access.

  • Australian Privacy Principles requiring reasonable security
  • Mandatory notifiable data breach obligations
  • Professional duty of care to protect client information
  • Client expectations for confidential information security

How SMB1001 Certification Supports Financial Advisory Firms

The SMB1001 framework includes five progressive tiers. We specialize in Bronze, Silver, and Gold certification—designed for Australian financial advisory firms and aligned with ASIC RG 256 expectations, client confidence requirements, and the threat landscape targeting financial services. Diamond and Platinum tiers exist for enterprise organizations with dedicated security teams.

Bronze

Foundation - 7 Core Areas

Addresses fundamental security gaps commonly exploited in financial advisory breaches:

  • Identity & Access Management: Controls preventing unauthorized access to client portfolios and financial planning platforms
  • Data Protection & Recovery: Frameworks protecting and recovering client financial information and investment data
  • Threat Prevention: Email filtering, phishing protection, and malware defenses addressing business email compromise
  • Security Awareness: Training helping advisors recognize sophisticated phishing targeting financial services
  • Vendor Security: Assessment processes for platform providers (Xplan, Iress, Class, custodians)
  • Incident Response: Frameworks for breach detection, response, and ASIC/client notification
  • Governance: Documentation supporting ASIC RG 256 compliance and regulatory expectations

These foundational areas directly address ASIC's cybersecurity expectations and demonstrate commitment to protecting high-net-worth client information.

Silver

Intermediate - 15 Areas

Bronze foundation + enhanced capabilities for growing advisory practices:

  • Advanced authentication (multi-factor authentication on all platforms containing client data)
  • Enhanced threat monitoring and detection for financial services attacks
  • Remote access security for advisors working with clients off-site
  • Systematic vulnerability management and security patching
  • Enhanced vendor risk assessment and ongoing platform security monitoring

Appropriate for:

  • Corporate Authorised Representatives (CARs) demonstrating independent security capability
  • AFSL holders with regulatory compliance requirements
  • Advisory firms with institutional or high-net-worth clients
  • Practices seeking competitive advantage through demonstrated security
Gold

Advanced - 30+ Areas

Comprehensive security program for complex financial advisory operations:

  • Network segmentation protecting sensitive client data zones from general business systems
  • Security testing and validation frameworks for financial planning platforms
  • Advanced incident response capabilities for sophisticated financial services attacks
  • Privacy and compliance frameworks demonstrating ASIC confidence
  • Comprehensive third-party risk management for all integrated platforms

Appropriate for:

  • Large advisory firms (50+ advisors managing significant client assets)
  • Firms managing ultra-high-net-worth clients requiring enhanced security
  • Multi-office practices with complex technology environments
  • Organizations where security is a competitive differentiator and client confidence requirement

Implementation Approach for Financial Advisory

Our Process:

1

Assessment

  • Current security posture and client data protection evaluation
  • Financial planning platform security review (Xplan, Iress, Class, custodian platforms)
  • ASIC RG 256 regulatory alignment assessment
  • Gap analysis against SMB1001 framework
2

Planning

  • Certification roadmap development aligned with practice goals
  • Resource and budget requirement identification
  • Coordination with IT providers, MSPs, and platform vendors
  • Implementation timeline and milestone planning
3

Implementation

  • Security control framework implementation guidance
  • Advisor and staff training (tailored for financial services environment)
  • Policy and procedure development for incident response and client notification
  • Platform security configuration support (Xplan, Iress, Class integration)
  • Vendor security assessment and ongoing monitoring frameworks
4

Certification

  • Readiness assessment and evidence collection
  • Certification audit coordination
  • Documentation package preparation for ASIC alignment
  • Certification achievement and ongoing compliance support

Note: Technical implementation is typically performed by your IT team or managed service provider with our expert guidance and oversight.

How Financial Advisory Firms Benefit

ASIC Regulatory Confidence

Systematic security controls demonstrating compliance with ASIC RG 256 cybersecurity expectations for financial services licensees

High-Net-Worth Client Confidence

Independent certification demonstrating commitment to protecting client financial information—valuable for client retention and new client acquisition

Professional Indemnity & Cyber Insurance Support

Evidence of security program implementation supporting insurance underwriting and demonstrating risk management for client data protection

Competitive Advantage in RFPs

Security certification differentiating your practice when competing for high-net-worth clients and institutional mandates requiring demonstrated cybersecurity

Reduced Operational Risk

Systematic approach to identifying and addressing vulnerabilities affecting financial planning platforms, client data, and investment operations

Business Continuity & Platform Resilience

Improved capability to prevent, detect, and recover from security incidents affecting trading systems, client portals, and financial planning platforms

Frequently Asked Questions

Q: Does SMB1001 certification satisfy ASIC cybersecurity compliance?

A: ASIC RG 256 requires financial services licensees to manage cyber resilience appropriately but doesn't mandate specific certifications. SMB1001 provides a recognized framework demonstrating systematic security controls aligned with ASIC's expectations—supporting regulatory compliance and demonstrating cyber risk management capability.

Q: We use multiple platforms (Xplan, Iress, Class, various custodians). Can we still certify?

A: Yes. SMB1001 is platform-agnostic and designed to work with the complex technology environments typical in financial advisory. We work within your existing platform ecosystem (Xplan, Iress, Class, custodian portals) to implement appropriate security controls and oversight across all systems containing client data.

Q: Our IT is managed by an MSP. How does certification work?

A: We coordinate with your managed service provider to implement technical controls. You receive consulting guidance and certification; your MSP handles technical execution with our oversight. This collaborative approach ensures both strategic security direction and practical implementation.

Q: How long does Bronze certification take for a financial advisory practice?

A: Typically 3-4 months from assessment to certification for practices with basic security hygiene already in place. Timeline varies based on starting maturity, platform complexity, and resource availability. We work with your schedule to minimize disruption to client service.

Q: Will this help with our professional indemnity and cyber insurance?

A: SMB1001 certification provides evidence insurers require—documented controls, regular assessments, independent validation, and systematic risk management. Financial advisory firms report improved insurance terms and reduced premiums after certification due to demonstrated security maturity.

Q: We're a Corporate Authorised Representative (CAR). Is certification relevant?

A: Absolutely. CARs often benefit significantly from Bronze or Silver certification to demonstrate independent security capability beyond dealer group requirements. Security certification supports your professional reputation, client confidence, and competitive differentiation—particularly valuable when competing for high-net-worth clients.

Ready to Demonstrate ASIC Compliance and Client Confidence?

Schedule a complimentary consultation to discuss:

  • Your current security posture and client data protection
  • Threats specific to financial advisory and wealth management
  • How SMB1001 supports ASIC RG 256 compliance expectations
  • Whether Bronze, Silver, or Gold aligns with your practice's needs
  • Implementation approach with your existing platforms and IT resources
Book Your Consultation

Not ready for a consultation? Download our Financial Advisory Security Guide

Email: hello@cyberpeople.com.au

Phone: +61 421 999 855