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The Analysis News & Opinions
Opinion
Seven in 10 leaders are worried about cyber attacks
In the wake of Russia’s invasion of Ukraine and the shift to hybrid working, our research found that 72% of business leaders view cyber risk as a signifi cant concern for their organisation, with 58% believing that the risk of a cyber attack on their organisation has increased. We found that: 54% believe that every board member has enough expertise to understand the potential impact and value of cyber security in respect of their organisation. 61% state appropriate
that their organisation has controls and monitoring
mechanisms in place which assure them that their cyber security measures are eff ective. 46% state that their organisation ensures that cyber security is considered in every business decision. 54% state that their organisation has an incident management plan in place for cyber attacks. 46% state that their organisation is able to access cyber insurance cover. The results of our survey provide evidence
that many businesses are taking cyber security seriously. However, a higher level of awareness and expertise is needed on boards of directors in view of the unprecedented shift to home working and heightened geopolitical tensions. Hybrid working is here to stay. However,
a remote workforce brings with it enhanced cyber risks, with employees relying on their home networks – and sometimes their own devices – to complete tasks. We fi nd that companies have not yet fully adjusted to this reality.
Dr Roger Barker Director of policy, Institute of Directors
Regulator speeds up removal of fi rms
The Financial Conduct Authority (FCA) is to use new powers to more swiftly cancel or change what regulated activities fi rms are permitted to do, these are known as permissions. This new power
is available following
a change in the law allowing the FCA to streamline and shorten the removals process. The FCA will provide a fi rm with two believes it is not using its
warnings if it
regulatory permission. The FCA will then be able to cancel the permission, or change it, 28 days after the fi rst warning if the fi rm has not taken appropriate action. The intention is that this will strengthen consumer protection by reducing the risk of consumers misunderstanding or being misled about their exposure to fi nancial risk and how much consumer protection they have. For example, believing unregulated activities are covered by the Financial Services Compensation Scheme when they are not. The new expedited process will also allow
the FCA to act quickly when cancelling a fi rm’s permission when it is no longer required and to swiftly respond to inappropriate uses of permission. For example, when a permission is being wrongfully used to market high risk products that are not regulated by the FCA. Where a fi rm fails to pay its regulatory fees, submit returns or complete
annual
declarations, the FCA may view these as indicators of a lack of regulated
activity
which may lead to permission being removed through use of this new power. The new power also supports the FCA’s
existing ‘use it or lose it’ initiative, which has seen the FCA carry out 1,090 assessments since May 2021 to see whether fi rms are undertaking the fi nancial activity for which they have permission. This has resulted in 264 fi rms applying to voluntarily cancel, and a further 47 to
Mark Steward
modify, their permission to carry out regulated activities. Mark Steward, executive director
of
enforcement and market oversight at the FCA, said: “Businesses with permissions they do not need or use, risk misleading consumers. These new powers will enable us to take quicker action to cancel permissions that are not used or needed. “Firms should regularly review their
permissions, ensure they are correct, and they are acting in accordance with them. If they are not needed or used, they should seek to cancel them.”
Headlines Firms required to prove they are carrying out the regulated activities they are permitted to or face losing this permission. Failure to take action after two warnings will lead to cancellation of regulatory permission 28 days after the fi rst warning. New powers support FCA’s ‘use it or lose it’ initiative.
6
www.CCRMagazine.com
May 2022
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