UK retail investment platforms have increased cyber security investment and coordinated industry efforts after more than half of firms reported a rise in cyber incidents over the past year, according to a sector-wide report published by The Platforms Association and Deloitte.
The report found that 55 per cent of surveyed firms had experienced an increase in cyber incidents during the previous 12 months, with AI-powered phishing, ransomware and third-party supply chain risks identified as the most significant threats. The research covered members of The Platforms Association, whose firms collectively administer more than £1.4 trillion of UK retail investment assets.
According to the report, cyber security has become a board-level issue across the sector. Seventy-eight per cent of respondents now employ a dedicated chief security officer or head of security, while 67 per cent discuss cyber risks at board level every quarter. The study also found that 89 per cent of firms place cyber teams within enterprise-wide functions rather than isolated technology departments.
The report said more than half of firms had increased cyber budgets, with spending typically ranging between £1,600 and £4,000 per employee. Technology transformation was cited by all respondents as a driver of cyber investment, compared with 44 per cent that identified regulatory compliance as a key factor. Threat detection and response capabilities were the leading investment priority, attracting focus from 89 per cent of respondents.
Keith Phillips, chief executive of The Platforms Association, said: “Cyber security is no longer a back-office technical concern. It sits at the heart of how our member firms serve their clients, meet their regulatory obligations and sustain the trust that underpins the entire retail investment ecosystem.”
The report highlighted continuing recruitment pressures despite higher spending levels. It found that 77 per cent of cyber vacancies take between three and five months to fill, with the greatest demand for specialists in threat detection, response and identity management.
Simon Glover, head of technology at Morningstar International Wealth and co-chair of The Platforms Association’s cyber security working group, said: “Working together in this domain helps protect investors and strengthens the industry as a whole.”
Looking ahead, Deloitte identified password-free authentication, autonomous AI systems and preparations for quantum computing as major technology developments likely to shape cyber strategies over the next three to five years. The report said platforms are increasingly planning for new forms of AI-driven attacks and future encryption requirements as cyber threats become more sophisticated.
Daniel Harris, chief information security officer at AJ Bell and co-chair of the association’s cyber security working group, said: “Collaboration and sharing of insight is essential for security teams to succeed in today’s threat environment.”
.jpg "The Best iPad to Buy (and a Few to Avoid)")
