In the regulatory climate of 2025, financial services firms are facing rising scrutiny over how they store, access, and protect sensitive data. Yet many small to midsize firms in Franklin Lakes operate under a dangerous assumption: that existing IT practices are “good enough.” They’re not—and the consequences of that miscalculation can be severe.
From boutique investment advisories to regional insurance brokers, the financial industry is under constant pressure to meet compliance standards like SEC cybersecurity guidance, GLBA regulations, and evolving state-level data protection laws. Unfortunately, many firms lack the internal resources or clear frameworks to implement controls that regulators increasingly expect to see in place.
The Hidden Weakness
For many financial firms, the biggest risk is not what they know—it’s what they assume. IT directors and managing partners alike often believe their infrastructure is secure because there haven’t been incidents. But no recent breach is not the same as risk-free.
In recent engagements, Cost+ has uncovered the following issues in Franklin Lakes-area firms:
- Backups were being performed, but not encrypted or tested for recovery
- Endpoint protection lacked monitoring, logging, or alerting
- Email encryption was optional rather than enforced for sensitive data
- No documented data retention policy or written disaster recovery plan
In each case, the firm assumed its MSP or internal IT team was handling compliance. In reality, no one had verified it against formal standards.
What Regulators Are Looking For
Regulatory reviews now look beyond whether a firm has antivirus or firewalls. Examiners expect to see formal documentation, written policies, audit logs, and real-world testing. They ask:
- Can you demonstrate that your backups are restorable?
- Do you log access to sensitive client records?
- Is your incident response plan reviewed and updated annually?
- Are you actively monitoring endpoints, and is MFA in place?
Missing any of these can not only affect audit outcomes but also raise liability concerns in the event of a breach.
The Business Impact of Inaction
Firms that ignore compliance or treat it as an IT checkbox expose themselves to cascading risks: reputational damage, regulatory penalties, lawsuits from clients, and higher insurance premiums. As cybersecurity continues to overlap with fiduciary responsibility, doing nothing is increasingly indefensible.
The good news is that firms don’t need to solve this alone. By partnering with an external provider like Cost+, financial institutions can operationalize compliance into their IT stack with clear documentation, predictable costs, and expert guidance tailored to their risk profile.
Where Cost+ Fits In
We help financial firms in Franklin Lakes identify weak points, implement the right controls, and prepare for regulatory review. Our Recovery+ and Compliance+ services provide not just technology—but the evidence, policies, and procedures required to withstand audits and satisfy regulators.
Explore how we support financial firms in Franklin Lakes.
Start with a Confidential Review
Compliance doesn’t start with tools. It starts with a conversation. We offer free, confidential reviews of your current policies, backups, endpoint defenses, and documentation—without obligation.