Data security in financial advice is about safeguarding the core of your business: your client relationships, your advice files, and your license. And in a constantly evolving regulatory and cybersecurity landscape, even firms with strong practices can benefit from a fresh look at how their data is protected.
1. Move from implicit trust to zero trust
Even in well-managed environments, it’s easy to assume internal access equals safe access. But that model’s being rethought across industries.
What’s worth considering:
- Role-based access control (RBAC) across key platforms like Xplan, CRMs, and file systems, ensuring staff only access what they need.
- Temporary access escalation for high-risk actions (like SOA downloads), rather than permanent elevated privileges.
- Context-aware authentication (now more accessible via Microsoft 365 and Google Workspace), especially for sensitive tools.
2. Revisit permissions across your SaaS stack
SaaS tools like Midwinter, Dropbox, or Office 365 offer incredible functionality, but also open up risks if access isn’t tightly managed.
A few questions to ask:
- Do your shared links expire by default?
- Can you see who accessed what, and when?
- Are you duplicating client data across multiple tools?
What can help:
- Centralising file storage to reduce sprawl.
- Quarterly permission audits.
- Enforcing minimum access by role across every system.
3. Backups are good, but restoration drills are better
Cloud platforms offer convenience, but they’re not always built for long-term recovery or compliance-level audit trails.
Best practices to explore:
- Third-party backups with at least 90 days’ retention.
- Scheduled restoration tests, especially before audit season.
- For platforms like Xplan, daily exports of key data to a WORM-compliant archive.
4. MFA is a starting point not the finish line
Multi-factor authentication is standard now, but attackers are getting smarter. MFA fatigue and SIM swap attacks are on the rise.
How to get ahead:
- Use conditional access that considers location and device status.
- Restrict access from jailbroken or non-compliant devices.
- Apply MFA not just to email, but to every system that touches client data.
5. Strengthen endpoint security, especially in hybrid setups
With more remote and part-time team members, laptops can be overlooked. But they’re often a direct path to sensitive data.
Simple controls that go a long way:
- Enforced disk encryption (BitLocker or FileVault).
- Patch compliance as part of your IT policy.
- Remote wipe as a standard offboarding step.
- Browser-based access with download restrictions where appropriate.
6. Rethink file sharing, email isn’t built for it
SOAs, fact-finds, and other sensitive documents still often move via email. TLS helps, but it’s not enough.
Consider switching to:
- Client portals with expiring links, audit logs, and MFA (e.g., FuseSign, myprosperity).
- Disabling external sharing from staff accounts, unless approved and tracked.
- DLP (Data Loss Prevention) policies to flag outbound data with TFNs or sensitive identifiers.
7. Make outsourcing secure by design
Outsourcing paraplanning or admin work can be a huge operational win but only if the security model is built right from the ground up. Even the best offshore team needs the right structure around them to ensure your clients’ data stays protected.
A few non-negotiables to look for:
- Virtual desktops with no local storage, printing, or USB access.
- Tightly controlled access, limited to business hours and business purposes.
- Comprehensive activity logging, with regular review.
- A dedicated compliance lead, accountable for offshore operations.
At Advice Lab, we’ve made security part of our DNA. Our offshore teams operate within an environment that includes:
- ISO 27001-certified systems.
- No data stored locally, everything stays within encrypted infrastructure.
- Strict session controls and user permissions.
- Weekly security reviews and in-house compliance training for all staff.
8. Embed data classification into daily workflows
Not every document carries the same risk. Yet many firms treat a fee disclosure and a Centrelink projection the same way.
A simple, scalable framework:
- Tag files by sensitivity: low, medium, high.
- Tailor sharing and storage policies accordingly.
- Tools like Microsoft Purview and Xplan can help automate this with minimal disruption.
9. Cyber risk reviews should include the whole business
Security can’t sit solely with IT. Industry regulations increasingly expect leadership involvement and operational resilience across the board.
A full-scope review might include:
- Reviewing user access to systems and integrations.
- Documenting SaaS-to-SaaS workflows (e.g., via Zapier or Power Automate).
- Business continuity planning, how prepared are you for 72 hours of downtime?
Strong data security reflects how seriously you take your role in your clients’ financial lives. The good news is with the right systems, operational security becomes a strength, not stress.
