Regulator takes IOOF dealer group to court

In a statement, the regulator said the action followed a number of alleged cyber breaches within the group's authorised representatives, including one incident at Melbourne-based investment advice firm Frontier Financial Group that occurred from December 2017 to May 2018.

ASIC said Frontier was subject to a “brute force” attack, during which a malicious user successfully gained remote access to Frontier’s server and spent more than 155 hours logged into the server, which contained sensitive client information including identification documents.

At the time, RI Advice was owned by ANZ.

ASIC alleges that RI failed to implement adequate policies, systems and resources to manage cyber security risk.

The regulator is seeking declarations by the court that RI contravened provisions of the Corporations Act, as well as orders that the dealer group implement adequate systems to deal with cyber security risk in future, and pay an appropriate civil penalty for the breaches.