The FSA Handbook sets out clear requirements for the management of information security within its regulated sectors. The requirements are best met by implementing and maintaining an ISMS that meets the ISO27001 standard – ISO27001-certification is clear evidence that the firm has taken full account of ISO 17799, as laid down in SYSC 3A.7.8
Failures in processing information (whether physical, electronic or known by employees but not recorded) or of the security of the systems that maintain it can lead to significant operational losses. A firm should establish and maintain appropriate systems and controls to manage its information security risks. In doing so a firm should have regard to:
(1) confidentiality: information should be accessible only to persons or systems with appropriate authority, which may require firewalls within a system, as well as entry restrictions;
(2) integrity: safeguarding the accuracy and completeness of information and its processing;
(3) availability and authentication: ensuring that appropriately authorised persons or systems have access to the information when required and that their identity is verified;
(4) non-repudiation and accountability: ensuring that the person or system that processed the information cannot deny their actions.
A firm should ensure the adequacy of the systems and controls used to protect the processing and security of its information, and should have regard to established security standards such as ISO17799 (Information Security Management).