OUTSOURCING UPS CYBER-ATTACK RISKS, IIAC BOSS SAYS

The head of the Investment Industry Association of Canada says the risk of cyberattacks is being amplified by the significant outsourcing done by investment dealers and asset managers. Ian Russell told attendees at an Empire Club of Canada luncheon on Thursday in Toronto that firms’ financial integrity and cybersecurity may not be matched by third-party vendors hired to enhance efficiencies, compensate for scale and reduce costs. To remedy this, he says regulators within Canada need to co-operate and co-ordinate across the financial sector, involving insurance, banking and securities firms. Russell says a positive example of such co-operation is the information-sharing memorandum recently forged between the Financial Consumer Agency of Canada and the Investment Regulatory Organization of Canada.