Cybersecurity Compliance Solutions for Financial Advisory Firms

The SEC’s cybersecurity rule has created new compliance requirements for registered investment advisors (RIAs). Those requirements include the development of a written cybersecurity plan and the timely reporting of data breaches or other cybersecurity incidents, should they occur. Working with a cybersecurity compliance solution provider can help make navigating these requirements less stressful.

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What Are the Top Advisory Firms for Cybersecurity Compliance?

Numerous firms offer cybersecurity compliance services for advisors, so it’s difficult to point to any one company as being the “best,” given the differences between them as well as what you might need. As you evaluate cybersecurity compliance options, consider:

• Scope of services or solutions offered
• Pricing and fee transparency
• Customer service and support
• Security protocols used
• Integrations with other tech tools and applications
• Overall reputation

With those factors in mind, here are some of the companies that stand out in the cybersecurity compliance space.

1. ACA Group

ACA Group offers a suite of compliance solutions for financial advisors that extends to cybersecurity¹. Services are grouped around six core areas of need. ACA can help you to:

1. Assess cybersecurity risks for your firm, and build a program to respond to them
2. Satisfy all applicable regulatory requirements for cybersecurity compliance
3. Develop a strategic business continuity plan to help your firm recover from cybersecurity incidents
4. Stress test your existing cybersecurity protocols to pinpoint strengths and weaknesses
5. Establish cybersecurity oversight of your firm’s portfolio
6. Manage cybersecurity risks associated with third-party vendors

The platform’s services incorporate comprehensive employee training to help ensure that every member of your team is risk-aware and well-prepared to respond appropriately to any cybersecurity threats that may arise. ACA also continuously monitors changes in cybersecurity regulations to ensure that its solutions are accurate and up to date.

2. COMPLY

COMPLY is a compliance platform that’s designed for wealth managers, broker-dealers, investment banks, private funds and RIAs². All cybersecurity solutions are aligned with the National Institute of Standards and Technology (NIST) framework, which has five key pillars:

1. Identify
2. Protect
3. Detect
4. Respond
5. Recover

COMPLY works with advisors to create information security policies that are shaped around those pillars. The platform’s services are designed to facilitate awareness of cybersecurity risks and help firms develop proactive strategies to minimize them. For example, COMPLY offers phishing attack simulations to test and train employees, as well as security awareness training.

Advisors have access to a virtual desktop that can be paired with COMPLY’s cybersecurity dashboard to create an even stronger line of defense. Support is available 24 hours a day, 5 days a week, if you have questions or need help. COMPLY encourages advisors to schedule a demo to explore the full range of cybersecurity solutions on offer.

3. Omega Systems

Omega Systems assists RIAs and asset managers with developing compliance programs that reflect the SEC’s cybersecurity rule requirements³. The range of services offered extends to:

• Comprehensive cybersecurity risk assessment
• Benchmarking analysis
• Data discovery to identify cybersecurity vulnerabilities
• Managed security information and event management (SIEM) services
• Incident response planning and policy development

Advisors benefit from a fully managed cybersecurity suite and expert advisory services. Through data discovery and risk assessment, you can gain a clearer understanding of how your current compliance program satisfies SEC cybersecurity requirements. Cyber awareness training is also available to help you educate your team on how to identify and mitigate security risks.

4. Ncontracts

Ncontracts offers cybersecurity compliance solutions that are centered on risk assessment and third-party vendor management⁴. Cybersecurity risk management software can help advisors to:

• Locate critical cybersecurity weaknesses
• Assess cyber maturity
• Construct remediation plans to curtail risk compliantly

With Ncontacts, advisors can also use vendor risk management solutions to monitor third-party cyber risks and data breaches in real time. You can construct a supervisory framework to manage risk while ensuring compliance with data privacy and protection rules. Ncontracts also offers business continuity planning solutions to help you attract and retain clients compliantly.

5. RSM

RSM works across multiple industries to meet cybersecurity compliance needs, including financial services⁵. The company uses a holistic approach to help advisors evaluate their cybersecurity risk and create actionable plans that are tailored to their goals.

RMS uses four pillars, Assess, Advise, Implement and Manage, to help advisors ensure cybersecurity compliance. Tailored cybersecurity solutions include:

• Application security
• Attack surface management
• Cyber architecture and engineering
• Identity and access management
• Cyber compliance and governance
• Cyber resilience and recovery
• Cyber strategy and risk
• Threat detection and response
• Cloud security

RSM also offers technology risk consulting services, which may be of interest if you rely heavily on third-party applications. The risk team can also help you review your tech stack and help you develop a plan for insulating your technology infrastructure.

6. Visory

Visory provides expert cybersecurity services for RIAs and wealth managers⁶. You can choose from a lengthy list of solutions, each of which is designed to serve a specific purpose in your cybersecurity compliance program.

For example, Visory SecureEndpoint is designed to protect your firm’s devices from cybersecurity threats. Meanwhile, Visory SecureBackup protects your firm’s data for business continuity and compliance. Managed security solutions, meanwhile, help advisors to reduce risk through:

• Regular vulnerability assessments
• Security monitoring
• Intrusion detection
• Network security services

Visory can help you develop a cybersecurity compliance plan that reflects your firm’s needs and key risk factors. The platform works with RIAs of all sizes, which could make it appealing to both established firms and newly independent advisors who are in the initial stages of building their businesses.

7. Proofpoint

Proofpoint is a cybersecurity solution provider for financial services firms, including RIAs⁷. The platform specializes in helping advisors defend against network threats across digital channels. You might consider working with Proofpoint if you want to:

• Halt advanced email attacks
• Respond to security threats quickly and effectively
• Fully comply with recordkeeping and archiving requirements
• Monitor for and reduce compliance risks
• Protect your firm’s social media profiles from cyberattacks

Proofpoint uses a human-centric approach to help financial services firms develop compliant cybersecurity policies and educate employees on risk awareness. Two tools enable this:

1. Proofpoint Nexus is an AI-powered threat detection system.
2. Proofpoint Zen focuses on risk monitoring and mitigation.

Bottom Line

Cybersecurity compliance is something every advisor must take seriously. Research and due diligence can help you find a service provider to work with. The options listed here offer a starting point, but you may find it helpful to explore other compliance advisory firms before making your final choice.

Tips for Growing Your Advisory Business

• Marketing is another area where you have to tread carefully to ensure compliance. The SEC’s marketing rule is specific about what advisors can and can’t say or do when promoting their firms. If you’re looking for a compliant marketing solution, you might consider working with a platform like SmartAsset AMP. SmartAsset AMP (Advisor Marketing Platform) is a holistic marketing service financial advisors can use for client lead generation and automated marketing. Sign up for a free demo to explore how SmartAsset AMP can help you expand your practice’s marketing operation. Get started today.
• Compliance software can be a useful addition to your tech stack if you’re interested in streamlining workflows or automating certain compliance processes. When comparing compliance software for advisors, consider what it’s designed to do for you, what you’ll pay for it, and the level of support that’s available should you need help or have questions.

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