Planners and accountants ‘at risk’ of forgetting cyber risks



Cybersecurity concerns are behind a long list of issues for financial advisers and accountants and system vulnerability is prevalent, according to technology provider Midwinter Financial Services.
Midwinter is set to launch a cyber protection service, Kamino, which will include vulnerability assessments, penetration testing, and ongoing monitoring for systems used by advisers and accountants.
Midwinter managing director, Julian Plummer said the need to regularly monitor the resilience of these systems was crucial.
“Hackers have turned their attention to smaller to medium business (SMBs) because the larger companies now have the money and systems in place to protect themselves,” he said.
“Advisers and accountants are prime targets because of the sensitivity of their client data.”
Plummer said Kamino would function as a cyber “health check” and help small and medium sized (SMEs) advice and accounting firms to protect their systems from potential threats.
“A security breach can destroy a business overnight so it is imperative that the appropriate precautions are taken when it comes to information security,” he said.
“Advisers and accountants spend a great deal of time ensuring they are compliant with ASIC’s [Australian Securities and Investments Commission’s] regulatory guides, meet their obligations under the Corporations Act as well as trying to stay out of the cross hairs of the ATO (Australian Taxation Office), so it’s easy to forget about potential issues closer to home.”
Recommended for you
Licensing regulation should prioritise consumer outcomes over institutional convenience, according to Assured Support, and the compliance firm has suggested an alternative framework to the “licensed and self-licensed” model.
The chair of the Platinum Capital listed investment company admits the vehicle “is at a crossroads” in its 31-year history, with both L1 Capital and Wilson Asset Management bidding to take over its investment management.
AMP has settled on two court proceedings: one class action which affected superannuation members and a second regarding insurer policies.
With a large group of advisers expecting to exit before the 2026 education deadline, an industry expert shares how these practices can best prepare themselves for sale to compete in a “buyer’s market”.