🔍 AI & Cybersecurity: What Advisers Need to Know

This month, I’ve focused on two big topics that are shaping financial advice right now—cybersecurity threats and AI developments. Both are moving fast, and staying ahead is key.

 

🛡 Cyber Threats & Client Data—Are Advisers Doing Enough?

Cybercriminals are getting smarter, and financial services firms are a prime target. Keeping client data safe isn’t just about ticking compliance boxes—it’s about protecting your reputation and trust.

The biggest risks right now:

• Phishing & social engineering – Scammers are more convincing than ever. Are you and your team prepared?
• Weak security protocols – Still relying on outdated systems? You could be leaving your firm exposed.
• Regulatory penalties – A single data breach could land you in hot water with the FCA.

Simple ways to tighten security: ✅ Use Multi-Factor Authentication (MFA) – A quick win to reduce the risk of unauthorised access. ✅ Secure document sharing – Ditch email attachments and switch to encrypted client portals. ✅ Regular staff training – People are the weakest link (and your strongest defence). Keep them informed!

📖 Further reading:

• Cybersecurity: Best Practices for Financial Advisers
• Top Cyber Trends for Financial Services in 2025

 

🤖 AI Updates—What Actually Matters for Financial Advice?

AI is transforming financial advice, but with all the hype, it can be hard to know what’s actually useful and what’s just noise.

Here’s what’s worth paying attention to:

• AI adoption is accelerating – More firms are integrating AI into their processes, streamlining workflows and improving client interactions.
• Regulators are watching – The FCA is keeping a close eye on AI to make sure it’s used responsibly.
• Potential risks—data security & bias – AI is only as good as the data it’s trained on. What safeguards are in place to ensure fair outcomes?

Key questions advisers should be asking: 💡 How does AI handle sensitive client data? 💡 Are AI-generated recommendations free from bias? 💡 What are the FCA’s compliance expectations?

📖 Further reading:

• Research Note: AI in UK Financial Services
• FCA and ICO to Host Roundtable on AI Adoption and Innovation

 

📜 FCA’s Focus on AI & Consumer Duty

The FCA is stepping up scrutiny on AI in financial services, making it clear that firms must prioritise client protection, transparency, and fairness.

The key concerns: 🔹 Data security – AI tools must protect client information and prevent data breaches. [Read more] 🔹 Transparency – Clients should understand AI-driven decisions, not just accept them blindly. [Read more] 🔹 Bias & discrimination – AI should help advisers serve all clients fairly, not reinforce hidden biases. [Read more]

What this means for advisers: ✔ Review your AI tools – Are they compliant with Consumer Duty standards? ✔ Monitor AI-generated advice – Ensure recommendations are accurate and in clients’ best interests. ✔ Stay informed – AI regulations are evolving. Keep up-to-date to avoid compliance headaches.

📖 Further reading:

• Data Analytics and Artificial Intelligence (AI) | FCA
• AI Risks in Financial Advice | FT

 

Cyber threats and AI are reshaping financial advice—are you prepared? By taking proactive steps now, you can protect your clients, improve efficiency, and stay ahead of the curve.

At We Complement, we’re here to help advisers integrate technology in a way that’s safe, efficient, and compliant. If you’re exploring how AI or digital tools could improve your practice, let’s chat!

We’d love to hear your thoughts on these developments—drop a comment or message us!