The Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko has underlined the significance of cyber resilience to licensed financial service providers amid growing threats in the digital space.
During Cyber Smart Week 2023, orchestrated by CERT NZ, the regulator said that it aims to bolster cyber resilience awareness among financial institutions in the country. In pursuit of ensuring fair, efficient, and transparent markets, the FMA advocates for heightened vigilance among financial service providers, especially considering the escalating menace of online scams and data breaches.
In a news release, The regulator also put out a reminder that FMA-licensed entities are mandated to promptly notify the FMA of any significant event that impacts the information security of their critical technology systems, a consequence often stemming from cyber-related incidents.
A comprehensive 2019 review by the FMA on cyber resilience within regulated entities revealed that while most participants acknowledged the escalating cybersecurity risk and perceived themselves as highly adept at safeguarding against and recovering from potential threats, their proficiency in detecting and responding to cyber threats was rated comparatively lower. Participants also anticipated an overall enhancement in their cyber resilience over the subsequent two years.
“In cyber risk, prevention is better than cure,” said Paul Gregory, FMA executive director of response and enforcement. “The FMA encourages all financial service providers to understand cyber threats and to ensure their systems are resilient to best protect themselves and their customers. It is important that entities encourage their staff to better understand the cyber risk and to be aware of the materials provided by CERT NZ and the FMA to best protect their businesses and their customers.”
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