Email Security for Independent Financial Advisers: A Guide

As a financial adviser, you rely on email every day to manage relationships, send reports, and respond to client questions.

It’s fast, familiar, and easy to use - but it’s also one of the most common causes of data breaches in financial services.

Nearly a third of all reported breaches in the UK involve email.

And it's not just cyber attacks.

Simple mistakes - like using BCC instead of CC, or attaching the wrong document - are behind many of the incidents reported to the ICO.

For smaller firms, even a single misstep can lead to lost trust, reputational damage, or regulatory scrutiny.

But with the right approach, email can be a secure and reliable tool.

Let’s look at why email poses a risk, what the rules say, and how to protect your firm and your clients.

Compliance at a Glance

FCA Expectations

The FCA’s Principles for Businesses include obligations to protect client data and act in your clients’ best interests.

Under the Consumer Duty, firms must make sure communications are clear, appropriate, and help avoid foreseeable harm - including harm caused by unsecured email.

UK GDPR and the Data Protection Act

The UK GDPR requires “appropriate technical and organisational measures” to protect personal data.

The ICO highlights encryption as a key control when sharing data by email. If a breach occurs and the data wasn’t protected, you could face a fine or formal investigation.

ICO Email Guidance

More than 1 in 5 data breaches reported to the ICO involve email mistakes - most commonly misaddressed messages or failure to use BCC.

The guidance urges firms to use encryption, train staff on safe email use, and consider tools that allow emails to be revoked after sending.

MiFID II Record-Keeping Rules

If you provide or discuss investment advice via email, those communications need to be archived.

MiFID II requires firms to retain client-related electronic communications for at least five years in a secure, searchable format.

Global Best Practice Standards

Frameworks like ISO 27001 or U.S. regulations (such as FINRA and SEC rules) recommend encryption, data retention, and access controls as standard practice.

While not legally required in the UK, they offer a strong benchmark for security maturity - particularly if you have clients or partners abroad.

Understanding the Risks

Complex cyber threats get the headlines - but most email breaches start with a simple mistake.

Phishing and Business Email Compromise

Phishing emails are designed to trick you into sharing credentials, downloading malware, or transferring funds.

They often impersonate trusted contacts, including clients, providers, or even regulators like the FCA.

"I once got an email that looked like it came from our platform provider, asking me to log in to review a client’s fund switch.

Everything looked normal - branding, language, even the footer.

I nearly clicked before realising the URL was wrong."

Anonymous IFA

Spoofing and Domain Impersonation

Attackers may use spoofing to fake your email domain and send messages that appear to come from your firm.

Without protections like SPF, DKIM, and DMARC, your emails are easier to impersonate.

"A client called to ask why I’d emailed them to update my bank details. I hadn’t.

Someone had faked my email address and sent them new payment instructions."

Anonymous IFA

Data Leakage and Confidentiality Breaches

Data leakage can happen when sensitive files are forwarded to personal inboxes, accessed on unsecured devices, or sent without encryption.

"I sent a valuation report to my own Gmail account to print from home. Later, I realised it included full client details.

It wasn’t a hack - just a shortcut that put their data at risk."

Anonymous IFA

Misdirected Emails and Human Error

The most common email incidents reported to the ICO are caused by human error - such as sending to the wrong address or forgetting to use BCC.

"I once attached the wrong PDF to an email - it had another client’s pension summary. I spotted it too late to recall the message."

Anonymous IFA

Technical Solutions That Work

Good email security isn’t just about locking everything down - it’s about making the right safeguards feel seamless.

End-to-End Email Encryption

Encryption ensures that only the intended recipient can read your message - even if it’s intercepted or misdelivered.

It turns an email from a virtual postcard into a sealed envelope.

"We added a secure email option to our Outlook accounts. Now, anything containing client data gets sent via a portal - it’s a simple extra click, but it means I don’t worry about misfires or interception."

Anonymous IFA

Secure Email Gateways (Inbound and Outbound)

Secure email gateways (SEGs) act like security guards for your communications - filtering threats before they reach you and scanning outbound messages before they leave.

On the inbound side, they block phishing, malware, and suspicious links. On the outbound side, they help enforce security by scanning for sensitive information, triggering encryption, and revoking access where needed.

"Since we enabled outbound scanning, the system started flagging any email with words like ‘payslip’ or ‘confidential’.

It’s a quiet safety net - I don’t always notice it working, but I’d miss it if it wasn’t there."

Anonymous IFA

Email Authentication (SPF, DKIM, DMARC)

These tools help prevent spoofing by verifying which systems are allowed to send emails from your domain and ensuring the content hasn’t been tampered with.

See the NCSC guidance for setup recommendations.

"After we set up DMARC, we stopped getting calls from clients saying they’d received strange emails from us.

It also gave us insight into who was trying to spoof our domain."

Anonymous IFA

Best Practices for Advisers

Technology is essential - but it’s how you use it that makes the biggest difference.

Double-Check Before Sending

Take a moment to check who you’re sending to.

Many breaches come from simple human error - the wrong recipient, the wrong attachment, or a visible BCC list.

Use Secure Email for Anything Sensitive

Use encryption or a secure portal for anything involving personal data or financial documents.

Be Cautious with Unexpected Requests

Phishing emails often look legitimate.

Pause, check, and confirm through a separate channel before acting.

Use Strong Passwords and MFA

Choose long, unique passwords and enable multi-factor authentication to protect your email account.

Minimise What You Share

Only include what's necessary.

Avoid attaching full reports when a simple update will do.

Don’t Be Afraid to Ask for Help

If something feels off, or you make a mistake, raise it early. You can often fix it before it becomes a breach.

How to Choose the Right Secure Email Solution

You don’t need to be a tech expert to choose secure email - but you do need to know what to look for.

Built-In Encryption

Platforms like Microsoft 365 and Gmail offer simple encryption options for everyday use.

Secure Email Portals

Great for sharing documents securely - recipients log in to view your message.

Encrypted Attachments

Less elegant but still useful - password-protected PDFs sent via email, with the password shared separately.

Trigger-Based Security

Automate encryption based on content, file types, or keywords to remove the guesswork.

Revocation and Access Control

Revoke access to a message after sending or set expiry windows for extra control.

FAQs

Do I need to encrypt every email?

No - only messages containing personal or sensitive information.

Is using BCC enough to protect client privacy?

No. BCC hides addresses but doesn’t protect the message contents.

What if I send something to the wrong client?

Act fast. Revoke access, contact the unintended recipient, and assess if a report is needed under UK GDPR.

How long should I keep client emails?

Five years is the minimum under MiFID II. Use a secure archive.

What’s the easiest way to start sending secure emails?

Check what your email platform already offers. If needed, look into secure portals or add-ons that work with Outlook or Gmail.

References

ICO Email Security Guidance, ICO, 2023

ICO Data Breach Statistics, Egress, 2022

FCA Consumer Duty Communications Guide, FCA, 2022

UK GDPR and Data Protection Act 2018, UK Government, 2018

MiFID II Recordkeeping Rules, FCA Handbook, 2023

FINRA & SEC Email Retention Requirements, SEC, 2022

Microsoft 365 Email Encryption Documentation, Microsoft, 2023

NCSC DMARC and Email Authentication Guidance, NCSC, 2023

IBM Cost of a Data Breach Report (2024), IBM, 2023

Egress Blog: Misaddressed Emails and Human Error, Egress, 2023

FCA Phishing Scam Warning (2025), Professional Adviser, 2025

Reviewed by

Sabrina McClune, 19.06.24

Sam Kendall, 13.06.25