Financial advisers encouraged to invest in cybersecurity training

Financial advisers need to invest in cybersecurity training amid widespread increases in cyberattacks this year, according to Redmill Advance.

Research from Hiscox found that 38 per cent of UK small businesses had faced a successful cyberattack this year, the highest proportion among the global markets surveyed.

Redmill Advance warned that the risks were particularly pertinent to financial services, with analysis from Comparitech finding that ransomware incidents in the sector rose by 72 per cent in Q3 2026.

Financial advisers were urged to stop treating cybersecurity as simply an IT department issue and see it as an essential part of their professional duties.

“Financial advisers handle highly sensitive client information every day from their personal details to their financial records,” said Redmill Advance founder and managing director, David Tait.

“This makes protecting that information a non-negotiable responsibility. But cyber threats are not just a concern for large financial institutions; firms of all sizes must consider how their day-to-day practices could leave client data exposed.”

With more advisers becoming increasingly dependent on technology for their day-to-day work, Tait argued that they need to maintain a level of professional competence in cybersecurity to keep pace with the risks arising from the use of technology.

He noted that while it was not the goal for financial advisers to become proficient IT specialists, they must know how to professionally and safely manage a potential threat.

“Professional competence means keeping your knowledge and skills relevant as the financial services sector evolves,” Tait added.

“Cybersecurity awareness must form part of that ongoing development. It is not about turning advisers into IT specialists, it is about ensuring they can recognise potential threats, understand their responsibilities and take appropriate action.”

Alongside the financial and operational consequences of a cyber incident, a breach can impact trust in an adviser/client relationship, and Tait argued that responsible data handling was part of the service advisers provide, especially when clients entrust them with highly personal financial data.

“Trust is fundamental to the adviser/client relationship, and that trust extends beyond simply receiving sound financial advice,” he continued.

“Clients also need confidence that their personal and financial information is being handled responsibly.

“A cyber incident can undermine that confidence in an instant, damaging not only your reputation but also prompting regulatory action against you. This makes data protection an integral part of professional responsibility.”

Tait called on advice firms to embed cybersecurity awareness into their wider approach to professional development.

“Advice firms should make cybersecurity awareness a regular part of their professional development programmes, rather than treating it as a one-off exercise or leaving it to their IT teams to handle,” he said.

“This involves firms providing relevant and ongoing training to their advisers, helping them understand the risks they may encounter and ensuring they know how to respond when something goes wrong.”

---