Encryption essentials for finance

18 December 2025

Encryption is not a nice to have in financial services. It is one of the basic controls that protects client trust, sensitive data and your firm’s reputation. Yet many firms still have gaps without realising it. A laptop that is not fully encrypted, an email sent without protection, or files shared the wrong way can undo years of careful compliance work.

At Maple, we work with hedge funds and finance firms across London and the UK. This post explains what encryption really means in practice, why it matters, and where firms commonly fall short.

What encryption actually does

Encryption turns readable information into coded data that can only be unlocked with the correct key. If encrypted data is lost, stolen or intercepted, it should be unreadable to anyone who does not have permission.

In simple terms, encryption protects data in three main situations:

• Data at rest – information stored on laptops, desktops, servers and mobile devices
• Data in transit – emails, file transfers and data moving between systems
• Data in use – access controls that ensure only authorised people can decrypt and view information

All three matter in a financial environment.

Why encryption is critical for finance firms

Financial services firms handle highly sensitive information every day. This includes client data, trading strategies, financial statements and personal information. Encryption helps protect this data against both external threats and internal mistakes.

From a regulatory point of view, encryption also supports requirements under frameworks such as:

• FCA expectations around data protection and operational resilience
• GDPR obligations to protect personal data
• ISO 27001 and other security standards often reviewed during audits

While encryption alone does not guarantee compliance, auditors and regulators increasingly expect to see it implemented properly and consistently.

Common encryption gaps we see

Many firms believe they are fully encrypted, but when we review their setup, a few gaps often appear.

Device encryption

Laptops and desktops should be encrypted end to end. This is especially important for:

• Remote and hybrid workers
• Senior staff who travel frequently
• Anyone accessing client or trading data

Without full disk encryption, a lost or stolen device can become a reportable incident.

Email encryption

Standard email is not designed for confidential financial information. Firms often assume that using a well known email platform is enough, but that is not always the case.

Encrypted email ensures:

• Sensitive messages cannot be read if intercepted
• Attachments remain protected
• Client communications meet confidentiality expectations

File sharing and collaboration

Sharing files through unsecured links or consumer tools is a common risk. Encryption should apply to:

• Internal file storage
• External sharing with clients, brokers and advisers
• Access from personal or unmanaged devices

Encryption and audits

During audits, it is not enough to say data is encrypted. Firms are expected to demonstrate it.

This includes:

• Clear policies covering encryption standards
• Evidence that devices are encrypted
• Proof that email and file sharing controls are enforced
• Monitoring and reporting that shows encryption cannot be bypassed

We help our clients prepare this evidence in a way that is clear, structured and audit ready.

How Maple helps

As a London based MSP specialising in financial services, we focus on practical, understandable security. When it comes to encryption, we help firms:

• Encrypt devices end to end across the organisation
• Enforce encrypted email and secure file sharing by default
• Align encryption controls with regulatory and audit expectations

Most importantly, we make sure encryption is applied consistently, not just in theory.

Are you confident your data is encrypted everywhere it should be?

If you are not completely sure, that is usually a sign it is worth reviewing. Encryption should be clear, enforced and provable, not based on assumptions.

If you would like a straightforward review of your current setup, Maple can help. Get in touch.

Maple supports hedge funds and finance firms with secure, compliant IT built for the real world.