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RI Advice breached its AFSL in failing in Cyber Risk Management

Friday 6 May 2022

 
RI Advice is the first company to be found to have breached is Australian Financial Services License (AFSL) for the failing  to have adequate cyber risk management.

The Australian Securities and Investments Commission (ASIC) said that there had been a ‘significant number’ of cyber breaches at RI Advice representatives between June 2014 and May 2020.

ASIC Deputy Chair Sarah Court said in an official statement, “These cyber-attacks were significant events that allowed third parties to gain unauthorised access to sensitive personal information. It is imperative for all entities, including licensees, to have adequate cybersecurity systems in place to protect against unauthorised access.”

RI Advice must also pay the $750, 000 to cover security and investments regulator’s legal costs.
 
Improvements In Cyber Security
However, the financial services regulator indicated last year that there had been improvements in ASIC-regulated entities approach cyber security between [period of the 2020 and 2021.

ASIC Commissioner said in an official statement at the time of  the
findings of these improvements, “These cyber-attacks were significant events that allowed third parties to gain unauthorised access to sensitive personal information. It is imperative for all entities, including licensees, to have adequate cybersecurity systems in place to protect against unauthorised access.”




 
Recent Podcast on cyber security compliance obligations:
 
Podcast: How is Your Cyber Risk Management?
https://www.thegrcinstitute.org/news/view/3133