The Intermediary –- June 2026 - Flipbook - Page 42
aware of data privacy and cyber risk – see the
extensive media coverage of the recent attack
on high street retailer Marks & Spencer – firms
are now being judged not only on the quality of
their advice, but on how effectively they protect
sensitive information.
While trust has always been a central pillar of
financial advice, that now extends beyond the
adviser and into the systems supporting them.
Increasingly, clients want reassurance that their
information is being handled both responsibly
and securely.
According to Weathersby, organisations
are increasingly recognising that traditional
approaches are no longer sufficient in an
environment where threats are becoming
more sophisticated.
He says: "To stay ahead, firms need to move
towards quiet, multi-layered and dynamic
verification – using device intelligence and
behavioural data to identify suspicious activity
in the background, before damage is done. In
"We've had a data leak"
the coming months and years, the brokers and
lenders that prioritise continuous, data-driven
verification will be better placed to
protect their
clients and differentiate themselves on trust."
and poor engagement capability may be more
The growing focus on trust is also influencing
susceptible to manipulation and less likely to
how firms assess the technology providers they
recognise the warning signs of fraud."
work with. While functionality and efficiency
The growing emphasis on customer
remain important, firms are increasingly
vulnerability is creating new responsibilities for
scrutinising how platforms manage security and
firms. It is no longer sufficient simply to protect
operational resilience.
information – firms must also understand how
customer characteristics may influence exposure
to cyber threats and financial harm.
At the same time, advisers are collecting,
Walton says: “What institutions are asking of
technology providers today is a different question
than it was five years ago. Basic functionality
is taken as a given, but the harder question is
storing and sharing increasing amounts of
what the platform's security posture looks like
sensitive customer information. Recent guidance
at scale and whether the provider can respond
from the Financial Conduct Authority (FCA)
to emerging threats faster than the institution
and Information Commissioner's Office (ICO)
could on its own.
has reinforced that data protection rules should
not prevent firms from gathering vulnerability
information where it is needed to support
customer outcomes.
However, with greater access to information
comes greater responsibility. As Gething explains,
from a governance perspective, firms must
understand "where information sits, who can
access it, how it is protected and what happens if
or when something goes wrong.”
He adds: “Operational resilience requires
visibility across the entire ecosystem, not just
within a firm’s own boundaries.”
Maintaining trust
If cybersecurity was once viewed primarily as a
defensive exercise, it is increasingly becoming
a matter of trust. As customers become more
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The Intermediary | June 2026
While trust has always
been a central pillar of financial
advice, that now extends beyond
the adviser and into the systems
supporting them. Increasingly,
clients want reassurance that
their information is being
handled both responsibly
and securely"
