Cybersecurity for RIAs: What You Need to Know (and Do Next)

As an RIA, you’re held to a fiduciary standard when it comes to your clients’ investments—but that same duty applies to how you protect their data. Regulators expect more, cyber threats are growing more sophisticated, and set it and forget it doesn’t cut it anymore.

In a recent webinar, experts from True West Consulting and Visory broke down the evolving cybersecurity landscape for RIAs. Whether you’re a newly registered firm or well-established, here’s what you need to know—and what you can do now to better protect your business and your clients.

Compliance Is Expanding Beyond the Rulebook

The SEC’s cybersecurity expectations are clear:

• Rule 206(4)-7 requires you to assess your firm’s risks, including cybersecurity.
• Reg S-P mandates protecting client data.
• Reg S-ID calls for identity theft prevention programs.
  Upcoming amendments to Reg S-P will require even more, like incident response timelines and client notifications. That’s on top of increasing expectations from states like Colorado adopting NASAA’s (North American Securities Administrators Association) model cybersecurity rule.

Yet, many firms still don’t know what policies they currently have, how to apply them, or even where their client data lives.

The Gaps Are Bigger Than You Think

Some of the most common weaknesses RIA firms face include:

• Outdated or nonexistent cybersecurity policies
• No offboarding process for employee departures
• Inadequate device management (especially personal or mobile devices)
• No documentation of employee training
• Lack of understanding around cybersecurity insurance requirements

Even well-meaning firms sometimes invest in tools but never configure them correctly. Cybersecurity isn’t just about having the right tools—it’s about using them well.

The Threats Are Real

Every day, Microsoft blocks 600 million attempted cyberattacks. The FBI reported $12.5 billion in cybercrime losses in 2023. RIA firms are not immune—especially with remote workforces, cloud-based platforms, and increasing reliance on third-party vendors.

Phishing is still the number one way attackers gain access, but ransomware and insider threats are rising. These attacks don’t just cause financial loss. They damage your reputation and erode client trust.

Why This Matters Now

The good news: there are practical steps you can take. Cybersecurity doesn’t need to be overwhelming. It just needs to start. And the earlier you build a solid foundation, the easier it is to maintain. Better to take a proactive approach than scramble when the SEC comes calling—or worse, after a breach.

What You Can Do

Here’s a list of steps you can take right now to strengthen your cybersecurity posture:

1. Review Your Policies
   Make sure they’re up to date, relevant, and actually followed. Look especially at employee onboarding and offboarding, data protection, and incident response.
2. Train Your Employees
   Your team is your first line of defense. Make sure they understand phishing, social engineering, and how to report incidents.
3. Know Where Your Data Is
   Identify your “crown jewels”—the client and firm data you can’t afford to lose. Then make sure you control who can access it.
4. Invest in the Right Tools (and Configure Them Correctly)
   Endpoint protection, device management, and real-time monitoring are essential. But don’t stop at buying them—make sure they’re working.
5. Document Everything
   Keep records of employee training, policy updates, and incident response plans. If you’re examined, this documentation is critical.
6. Get Help Where You Need It
   Don’t expect your IT generalist or MSP to know RIA compliance requirements. Work with providers who specialize in your space.
7. Start Now, Even If It’s Small
   Pick one gap and fix it. Then build from there. Cybersecurity is a journey—and every step forward helps.

Want to Know Where You Stand?
Download our RIA Cybersecurity Self-Assessment – It’s a quick way to identify your biggest gaps and start building your plan.