Early releases of pension scheme adviser Lane Clark & Peacock (LCP)’s annual survey reveals that cyber security threats are amongst the top worries of pension scheme trustees, with 61% rating it seven or higher out of ten on a scale of worry. The full ‘Chart Your Own Course’ survey is expected to be available shortly. 

It is encouraging to see trustees recognising the severity and prevalence of cyber security risks in the pensions industry, especially after the recent Capita and BBC cyber incidents. For more information about both incidents, please see our previous blogs linked above on the topics.

Building resilience against cyber attacks is only growing in urgency and importance in the pensions industry, particularly in the wake of the Pensions Regulator’s focus on cyber security in the last few months. In its recent regulatory updates, the Pensions Regulator has emphasised that trustees of pension schemes ‘must’ (rather than ‘should’) establish an effective system of governance, including internal controls – a key aspect of those internal controls including cyber risk. 

Trustees are now required to assess and understand their scheme’s cyber risk, ensure data handlers and system managers are equipped with mechanisms to mitigate cyber security risks and impacts, and respond to cyber breaches systematically. What trustees can best do is to pre-empt and prepare.

How we can help

Burges Salmon has designed a Cyber Security Package offering to meet the minimum cyber security expectations for trustees under the Pensions Regulator’s cyber security guidance and the General Code of Practice. You can find more information in our Cyber Security Compliance Trustee Checklist and you can learn about our team’s experience in advising pension schemes in relation to cyber security here.

If you are interested in finding out more about our Cyber Security Package or you have any questions on our wider cyber security offerings, please contact Richard Pettit or Samantha Howell.