Fortnum Private Wealth (FPW) has reached agreement with the Australian Securities and Investments Commission (ASIC), to resolve legal proceedings in relation to a historic cyber governance matter, which occurred between April 2021 and May 2023.
Fortnum self-reported the matter to ASIC and cooperated with them to resolve the matter, avoiding a lengthy trial and has agreed to pay a penalty of $1.35 million and ASIC’s costs. The NSW Supreme Court has yesterday made orders reflecting the agreement.
It is important to note that the Regulator did not identify any client or adviser loss caused by the contraventions, and our core systems were not compromised. However, we apologise for the concern that this may have caused some of our clients. Our priority has always been and remains the safety of client assets and data and supporting advisers in maintaining robust safety standards.
The cyber frameworks and policies reviewed by ASIC three years ago, no longer reflect the cyber security management framework, governance arrangements, controls and support that are in place today in our business.
As agreed with ASIC, over the last three years, Fortnum and the broader Entireti Group have made significant investments in cyber governance, oversight, specialist expertise, monitoring, training and support for adviser and risk management systems to strengthen cyber resilience across the business and adviser network, in an increasingly complex threat environment.
Cyber security is an ongoing challenge for all industries and organisations world-wide. Effective cyber resilience requires continuous improvement and shared responsibility across licensees, advisers, employees and technology providers.
Fortnum Private Wealth Chief Executive Officer, Matt Brown
