The asset management industry suffers from a lack of expertise and preparedness with regard to cyber security, and is risking “serious harm to its clients” and the wider market, the Financial Conduct Authority (FCA) has warned.
In a multi-firm review of the asset management and wholesale banking sectors published today (10 December), the FCA also found an overreliance on third-party service providers and a lack of understanding of cyber risk from board and management level individuals.
The firms selected varied in size, scale, operating models and geography, with the asset managers polled ranging from £15bn to £500bn in AUM, according to the regulator.
The report found that boards and management committees “have limited familiarity with the specific cyber risks their organisations face”, while “almost all” board members told the FCA “how challenging it was to fully understand and explain the specific risks that their firms face”.
Source: Investment Week