In today’s digital landscape, financial firms face mounting pressure to tighten up their cyber security. Regulators, customers and the media are all watching. Simply put: cyber risks are business risks now. For Australian Financial Services (AFS) licensees, this means staying a step ahead of threats and ensuring compliance with ASIC’s rules. It’s not just an IT issue it’s an operational responsibility.
What ASIC Expects from AFS Licensees
Adequate cyber protections are part of your core licence obligations. In practical terms, that means you must have systems, policies and processes in place to protect client data and deliver services safely. ASIC says licensees should “adequately manage cyber security risks” and have “adequate technological systems, policies and procedures” to safeguard sensitive information. They expect active management of those risks: regular risk assessments, incident-response plans and up-to-date security measures.
Think of it as keeping the lights on, you wouldn’t operate without electricity, so don’t operate without basic cyber hygiene. Specifically, ASIC expects you to:
- Know the risks: Identify the specific cyber threats to your business (phishing, malware, data leaks, etc.).
- Manage the risks: Implement controls aligned with best practices (from firewalls and patching, to multi-factor authentication and employee training) to reduce those risks.
- Stay prepared: Maintain tested incident-response and business-continuity plans so you can act fast if something goes wrong.
- Protect customers: Prioritise client data security – a breach of personal or financial information can cause real harm.
You don’t need to be a security expert yourself, but you do need to ensure that someone competent is managing cyber risk on your behalf. As ASIC put it, cyber security should be “front of mind” for all AFS licensees. And remember, if you hold APRA-regulated licenses as well, you’ll need to meet those standards (like CPS 230) on top of ASIC’s expectations.
The Risks of Standing Still
Ignoring cyber security is not an option. Cyber-attacks and data breaches are costly, the latest IBM report shows the average breach in the financial services sector costs over AUD $5.6 million. More importantly, non-compliance with ASIC can lead to enforcement action. ASIC has already taken action against licensees for cyber failures (e.g. RI Advice Group and now FIIG Securities). In those cases, failures like out-of-date antivirus, poor password practices and lack of back-ups left clients exposed.
The consequences? At a minimum, you’d be slapped with a formal warning or fine. At worst, you could lose client trust or even your licence. Beyond regulators, customers and business partners expect you to keep their data safe. A breach can cost you contracts and reputational capital that took years to build. In short: failing to act invites penalties, remediation costs, and damage to your brand, all things no business owner wants.
Why Proactive Cyber Risk Management Pays Off
The good news is that smart, proactive security is an investment in your business, not a burden. A solid cyber risk strategy prevents problems before they happen. By regularly reviewing and upgrading your security posture, you reduce the chances of a breach, and you demonstrate to regulators and clients that you take risk seriously.
Proactivity also means efficiency. When cyber security is baked into your business strategy, you can scale securely. It means avoiding last-minute scramble after an incident and instead having confident plans in place. Think of it like insurance: implementing strong controls and training now saves far more time and money than fixing a crisis later. Plus, being ahead of the curve can become a competitive advantage. Clients want to know you’re safeguarding their data; being able to say “we have best-practice cyber controls and compliance” builds trust and can win more business.
Partnering for Security: How InterIntra Helps
You don’t have to go it alone. Many financial firms find it smart to partner with a strategic cyber security provider. That’s where InterIntra comes in. Our team acts like your in-house cyber co-pilot (even if you don’t have an internal security team). We bring deep expertise and certifiable processes, so you tick all the boxes without the headache.
For example, InterIntra is ISO27001-certified and follows frameworks like the ACSC’s Essential Eight, meaning we align your practices with industry gold standards. We offer 24×7 monitoring (through Endpoint Detection & Response and a Security Operations Centre) so threats get spotted and handled immediately. We help set up multi-factor authentication, patch management, and encryption behind the scenes. We even run regular employee training on phishing and password safety. In short, we make sure the technical side of cyber security is rock-solid and up-to-date.
But we don’t stop at tech. As a strategic partner, we work with your leadership to ensure your cyber strategy fits your business goals. Whether that means reviewing your risk-management systems, preparing for an audit, or testing your incident response, our virtual CISO (vCISO) service covers it. We become an extension of your team, advising on compliance requirements (ASIC, APRA, etc.) and emerging threats, so you stay ahead of regulatory expectations.
Take Control of Your Cyber Risk
No more guessing games. If you’re an AFS licensee feeling the squeeze, remember: acting early pays off. Tightening your cyber defenses now means smoother compliance and less sleepless nights down the road. With InterIntra as your partner, you get peace of mind that your systems, policies and team are all aligned with what regulators expect, and with best-practice cyber security.
Don’t wait for a breach or a regulatory warning. Talk to InterIntra today about our vCISO (virtual Chief Information Security Officer) service. We’ll work with you to build a clear, strategic cyber plan that protects your clients, your licence and your bottom line.