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ARTICLE · 19 MAY 2022

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Federal Court confirms AFS Licensee obligations include adequate cyber risk management

Gilchrist Connell
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Landmark decision confirms AFSL holders must have adequate cyber risk management systems & procedures to meet obligations.

AustraliaTechnology
Nitesh Patel
Nitesh Patel
Kaye Lai
Kaye Lai
Linda Zeng
Linda Zeng
Reece Qose
Reece Qose
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On 5 May 2022, the Federal Court in ASIC v RI Advice Group Pty Ltd [2022] FCA 496 found that an Australian Financial Services Licence (AFSL) holder contravened licensee obligations under section 912A of the Corporations Act 2001 by failing to have adequate cyber risk management systems and procedures between 15 May 2018 and 5 August 2021.

This landmark decision is a first in Australia.

Whilst it holds confirms AFSL holders must have adequate cyber risk management procedures to meet their licensee obligations, uncertainty remains as to what licensees must have in place to meet their regulatory obligations. AFSL holders should also consider their notification obligations to ASIC following a cyber incident in light of the decision.

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