Choosing the right Managed Service Provider (MSP) for a 20–50 person financial services firm requires evaluating at least 6 critical areas: regulatory expertise, cybersecurity maturity, documented risk management, response times, governance reporting and operational resilience. Firms that choose based purely on price often face higher long-term costs, increased regulatory exposure, and greater security risks. In FCA-regulated environments, structured compliance governance and measurable accountability matter far more than basic helpdesk support.
The Financial Conduct Authority (FCA) provides detailed guidance through the FCA Handbook, including the Systems and Controls (SYSC) rules, as well as specific operational resilience requirements that regulated firms must follow. These frameworks outline expectations around governance, risk management, internal controls, and oversight.
For most 20–50 person financial services firms, meeting these standards requires structured monthly risk reviews, documented control evidence, and board-level reporting to demonstrate ongoing compliance.
1. Regulatory & FCA Compliance Understanding
Financial services firms operate under strict FCA oversight, including SYSC requirements, GDPR obligations, and operational resilience expectations.
When evaluating an MSP, ask:
- Do they conduct documented monthly risk reviews, not just annual audits?
- Do they provide quarterly board-level IT compliance reporting?
- Do they support Cyber Essentials Plus?
- Are they ISO 27001 certified?
- Can they demonstrate how controls map to FCA requirements?
A generalist MSP that cannot clearly explain how their service aligns with regulated-sector obligations
In financial services, compliance is not optional — it must be structured and documented. Generalist MSP’s may not be able to clearly explain how their service aligns with the FCA regulations.
2. Cybersecurity (Layered Protection Model)
A modern financial advisory firm should have at least 7 layers of cybersecurity protection, including:
- 100% enforced multi-factor authentication (MFA)
- 24/7 behavioural threat monitoring
- Automated Threat protection providing device/user isolation
- Application control to prevent unauthorised software execution
- Continuous vulnerability scanning
- Email and SaaS threat monitoring
- Security awareness training
Basic antivirus and a firewall are no longer sufficient. Ransomware and account compromise attacks routinely bypass outdated security models.
Ask your MSP:
- Is MFA mandatory for all users?
- Is threat monitoring response 24/7?
- How quickly are vulnerabilities remediated?
- How is ransomware execution prevented?
Your MSP should be able to clearly evidence how they are keeping your business secure.
3. Governance & Accountability Structure
Most MSPs focus on tickets using a reactive support model. Regulated firms require governance.
Look for:
- A dedicated Technical Alignment Manager
- Monthly documented risk and gap reviews
- Average remediation timelines (e.g., 3 days per identified issue)
- Quarterly board-level reporting included
- A vCIO function built into the service
Without management oversight, risks can accumulate silently until they become incidents.
Governance separates proactive IT management from reactive support.
4. Response Times & Escalation Model
In a regulated environment, response SLA’s are extremely important
Minimum expectations for a financial firm:
- 30-minute response time for critical issues
- Defined severity tiers
- Transparent escalation pathways
- 24×7 support for hosted or critical systems
Be cautious of unrealistic “100% uptime marketing guarantees” no one can provide 100% uptime and SLA penalties are often meaningless.
5. Backup & Operational Resilience Standards
Operational resilience is now a regulatory priority.
For a 20–50 person financial services firm, an appropriate backup model should include:
- Frequent Recovery Points (minimum Daily backup passes to offsite storage)
- Minimum 30-day rolling restore history
- Extended archival retention (e.g., 12–13 months)
- Daily automated backup verification testing
- Documented recovery procedures
Ask directly:
- What is our Recovery Point Objective (RPO)?
- How often are backups tested?
- When was the last verified recovery test?
If backups are only as good as the restore. They must be tested frequently. Modern backup solutions will provide automated full system recovery tests with reporting.
6. Pricing Transparency & What Is Actually Included
For financial services firms in the South East, proactive managed IT services typically range from £80–£150 per user per month, depending on compliance depth and security maturity.
Clarify:
- Is cybersecurity layered or sold as optional add-ons?
- Is compliance reporting included?
- Are vulnerability scans included?
- Is vCIO oversight included?
- Are backups and SaaS protection included?
Low-cost providers often separate compliance and governance into chargeable extras.
True “all-inclusive” services should cover security, risk management, reporting, and alignment — not just reactive support tickets.
Real Scenario: The Risk of Choosing on Price Alone
A 80 user organisation in the South East who outsourced their IT services had been compromised twice in less than 12 months
After a review the customer found gaps in their compliance.
- No documented risk reviews were conducted
- Backups were not regularly tested
- Vulnerability scanning was absent
- No board-level IT reporting existed
- MFA was not universally enforced
Following a compliance review, multiple gaps were identified, requiring urgent remediation and additional cost.
After moving to a structured compliance-led provider, they implemented:
- Monthly documented risk reviews
- Enforced MFA across all users
- 4-hour backup recovery point objectives
- Quarterly board reporting
- Continuous vulnerability management
The result: Improved audit readiness, clearer governance, and measurable risk reduction.
A Simple Decision Framework for Directors
Score each MSP from 1–5 in the following areas:
- Compliance maturity
- Security layering
- Governance reporting
- Accountability structure
- Response model clarity
- Certifications & standards
If any compliance category scores below 4, reconsider your shortlist.
In regulated sectors, adequacy is not enough — structure and documentation are essential.
Final Thoughts: Choose Structure and Proactive Support
The right MSP for a financial services firm is not simply the fastest reactive helpdesk or the cheapest provider.
It is the partner who can deliver:
- Documented monthly risk management
- Measurable cybersecurity controls
- Board-level accountability
- Regulatory alignment
- Proven operational resilience
In an FCA-regulated environment, structured governance protects both your firm and your reputation.
About VMhosts
- 15 years supporting UK businesses
- ISO 27001 certified
- Cyber Essentials Plus
- Microsoft Partner
- 30-minute critical response target
- Monthly Technical Alignment reviews
- 5+ year average client retention
We work with regulated organisations across the South East to deliver structured IT governance, layered cybersecurity, and operational resilience designed for compliance-led environments.