The Financial Markets Authority opened consultation on the standard conditions for financial institutions in July, including a proposed ‘business continuity and technological systems’ condition. This condition, similar to that for financial advice providers, comes on the back of the FMA’s information sheet which aims to help licensed entities enhance the resilience of their cyber and operational systems.
The recently publicised hack of Booster Financial Services brings this issue back into stark relief. In this Financial Law Insight we take a look at what the information sheet means for licensed entities and how they might best put the requirements, and regulator expectations, into practice.
Background
Cyber matters have been a developing priority for the FMA. CEO Samantha Barrass canvassed the topic as part of a wide-ranging speech to the Financial Services Council Connect back in March, pointing out that “cyber security remains a significant risk across the sector, around the world.” Barrass noted that “as recent high-profile events have shown, none of us is immune to this threat so a good response plan is essential and indeed an important factor in your…
