Upcoming FMA Regulations regarding CyberSecurity

16.05.22 06:05 PM By Jatinder Oberoi

Last year FMA (Financial Markets Authority) mandated the new requirements for companies and people looking to get the Financial Advice Provider (FAP) licence. 

  • The target date for Class 1 and Class 2 license applications was 30 September 2022.
  • The target date for Class 3 license applications was 30 June 2022.

Some of the requirements are cybersecurity and business continuity plan (BCP) related and require some technical know-how and understanding of the business as well. In addition to the FAP full license application kit, and other resources available on FMA website, the FMA is developing self-assessment tools to help Class 1 and Class 2 license applicants identify where they might need to do further work to meet the full licencing requirements. A Cyber Security and Business Continuity Planning (BCP) self-assessment tool   had recently been published on the FMA website.

FMA will continue to accept applications for full licences at any time. However, if you’re a transitional licence holder and you want to continue providing financial advice services under your own licence from 17 March 2023, you must apply for a FAP full licence as soon as possible to ensure it is processed by the time your transitional licence expires at the close of 16 March 2023. Note that the turnaround time for processing applications is up to 60 days and FMA are closed for the summer holidays from 20 December 2022 to 9 January 2023 and will not be processing any licence applications during this time.

For these licenses:

  • FMA specifically asks for an approved, documented cyber security policy and the details of its approved, last review and next review.
  • If you don't have this, you need to ensure that you comply with the business continuity and technology systems license condition

 SeComPass have created a light-weight framework to fulfill those requirements. Our consultants can swiftly help you fulfil the FMA requirements for cybersecurity and BCP.
Many organisations don't know where to start with for the FMA requirements. If you think, you need a little bit of advice, we can discuss it over phone and swiftly work with you to provide the documents and policies in required format, according to your needs.
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