RIAs operating within today’s financial landscape must guarantee compliance with the cybersecurity regulations outlined by the SEC (Securities and Exchange Commission). Since client data is more frequently a target for cybercriminals, these regulations have become imperative.
Staying current with compliance can be achieved by collaborating with RIA compliance consultants, professionals who support firms in achieving all needed cybersecurity and compliance standards. The expertise offered by these consultants makes it much more feasible to traverse the complexities involved in cybersecurity.
Why is Compliance Crucial for RIAs?
Cybercriminals frequently regard RIAs as attractive targets, owing to their management of very sensitive client information, such as financial portfolios. The SEC has applied abrasive regulations related to cybersecurity; non-compliance can carry heavy fines.
The SEC suggests that non-compliance fines can be greater than $1 million. The fines not only have financial repercussions for the firm, but they can also lead to clients losing trust, which might have implications on future business development.
Key Services Offered by RIA Compliance Consultants
AdviserCyber’s RIA compliance consultants are key to making sure that neither IT nor compliance becomes the vulnerability. Through a consideration of both aspects, consultants help RIAs protect their businesses, keep client confidence, and escape penalties from the SEC.
1. Customized Cybersecurity Solutions
Consultants present personalized solutions that meet the unique requirements of a firm. In particular, they have created continuous monitoring systems that monitor any unusual happenings in a firm’s digital infrastructure.
Reducing the risk of expensive data breaches is what this type of monitoring does by noticing problems early. In actual fact, detecting problems early can cut the cost of a breach by up to 40%.
2. Compliance Documentation
For proving compliance, good and recent documentation is critical during SEC audits. RIA compliance consultants develop and manage these documents as regulations progress. Firms that fail to provide adequate documentation have experienced fines upwards of $500,000, stressing the need for correct and easily accessible records.
AdviserCyber’s Expertise in RIA Compliance
AdviserCyber is an important contributor in the cybersecurity area, especially for registered investment advisers. Under the direction of Michael Cocanower, a Certified Ethical Hacker and an Investment Adviser Certified Compliance Professional (IACCP®), AdviserCyber delivers highly focused services.
Building on more than 25 years of expertise, the firm concentrates uniquely on helping RIAs meet cybersecurity requirements. The services offered feature complete onboarding procedures, risk evaluations, and continuous cybersecurity monitoring which helps RIAs maintain security and compliance.
AdviserCyber offers a service for continuous monitoring that is available 24 hours a day and 7 days a week. Differing from typical IT teams that might keep office hours, AdviserCyber monitors possible threats all day, making sure that real-time responses are given to any potential cyber threats.
IT Convergence with Compliance
Many RIAs today are facing a merging of IT roles and compliance roles that is on the rise. The rise of cloud computing among firms and the promotion of remote work has caused these roles to start to resemble one another.
The threat is that cybersecurity could be undervalued as IT and compliance teams split their attention. Convergence has made a cybersecurity consultant with knowledge of both compliance and IT infrastructure technicalities indispensable.
Wrapping Up:
The more regulations introduced by the SEC, the greater the threats to financial and operational compliance become. Firms that work with RIA compliance consultants not only confirm their compliance with these regulations but also improve their cybersecurity position to shield themselves from the high costs of data breaches.
As a niche firm, AdviserCyber supplies RIAs with everything from risk assessments to real-time monitoring services. RIAs that wish to remain compliant and secure can greatly benefit from hiring a trusted RIA compliance consultant for their long-term success and stability in a digitally focused world.
