Strengthening Security with Multi-Factor Authentication By Head of IT Introduction At Paradigm, safeguarding your data is a top priority. As part of our ongoing commitment to cyber resilience, we have recently introduced Multi-Factor Authentication (MFA) across our platforms. Why MFA? Following a comprehensive security audit conducted by Deloitte, one of the key recommendations was the implementation of MFA. This additional layer of security ensures that all data stored behind logins— including personal details such as CPD records and client information—is better protected against unauthorised access. reassured that Paradigm will keep you ahead of the regulatory curve. Addressing Initial Challenges We acknowledge that the rollout of MFA was not without its challenges. The quick timelines and high settings of the security measures caused inconvenience for some users. Following Adviser feedback we requested that MFA prompts occur every 60 days, making the process more manageable and similar to routine password changes. This adjustment has now been implemented. Industry Standards and Regulatory Context Cybersecurity is not just a best practice— it’s an expectation. The Financial Conduct Authority (FCA) emphasizes strong cyber hygiene, robust systems, and operational resilience. While there is no explicit FCA rule mandating MFA for all brokers, the regulatory framework (including SYSC and operational resilience obligations) supports the use of “adequate controls,” which industry best practice interprets as strong authentication measures like MFA. Paradigm’s decision to implement MFA aligns with these guidelines and reflects our proactive approach to risk management. Real-world enforcement shows that firms have faced criticism and fines for weak cyber controls or lack of MFA, underscoring the importance of this measure. Looking Ahead MFA is already common practice across many industries, and its adoption is expected to grow. By introducing MFA, Paradigm is taking a positive step toward ensuring your data remains secure. We believe the 60-day validation period strikes the right balance between security and convenience. Thank you for your understanding and cooperation as we continue to strengthen our systems. For more details, please refer to our official notice: • Important Security Enhancement to Your Account • MFA Helpsheet 14 WINTER PROTECT NEWSLETTER
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