Class action deal spotlights cyber controls: Fitch

While there’s no credit rating impact from Desjardins Group’s $200-million data breach class action settlement, the result highlights the importance of cybersecurity controls, says Fitch Ratings.

In a new report, the rating agency said no ratings impact resulted from the resolution of the class action against Desjardins over a privacy breach that occurred in 2019.

The settlement, which provides for up to $201 million to be paid to affected customers, has no financial impact on the firm “as the company has already provisioned for this amount in 2020,” Fitch said.

Nevertheless, the incident heightens the importance of the company’s cybersecurity measures and governance, it suggested.

“While this settlement largely resolves and puts to rest the issue, [Desjardins’] ratings would be sensitive [to] any future data breach incidents and/or additional regulatory findings that may impact our assessment of [the firm’s] risk controls,” it said.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.