Financial Services Firms Plan For Greater Cybersecurity Scrutiny - Data

Josh O'Neill

5 April 2017

The majority of financial services firms worldwide intend to increase spending on cybersecurity in the next year, new data shows, a sign they expect greater regulatory scrutiny from watchdogs on their safeguards to protect investor information.

Some 86 per cent of financial institutions say they will “increase the time and resources they spend on cybersecurity” throughout the next year, according to a survey by 's proposed rules to enhance reporting standards, and 62 per cent of firms surveyed think the revamped regulations will impact their firms. Responding to an influx of cyber attacks in recent years, the US's largest financial watchdog now requires some firms to adopt written policies to protect clients' private information and introduce processes to protect against future breaches.

“In the wake of high profile cyberattacks, many are anticipating clearer and more punitive cybersecurity regulation to be implemented,” said Jason Elmer, managing director, compliance and regulatory consulting at Duff & Phelps. “Firms are proactively looking to strengthen cyber defences as a result, and this is an opportunity for regulators to collaborate with financial institutions to form new rules.

“What’s also clear is that commercial pressures from investors concerned about the security of their sensitive data will accelerate any attempt to improve cybersecurity measures. For all these reasons, 2017 is set to be a watershed year for cybersecurity regulation.”