GDPR

UK GDPR Changes

• Data Protection and Digital Information Bill: The Bill is aimed at increasing flexibility in the use of personal data and reducing the burden of complying with UK data protection laws. It is not a full-scale overhaul, rather, offering some clarifications and adjustments to the current regime. Businesses compliant with the UK data protection laws do not need to take additional steps to comply with the Bill but may wish to use the reforms to simplify their data protection compliance.
• Impact on Businesses Operating in the EU: The scaling back of administrative duties under UK data protection laws is unlikely to be beneficial to businesses operating within the European Union. Businesses with operations in Europe will need to engage with some aspects of EU GDPR such as the requirement to appoint a Data Protection Officer, irrespective of the UK reforms.
• Changes to Research, Legitimate Interests, and Recordkeeping: The Bill introduces statutory definitions for processing personal data for various types of research and changes the definition of “consent” under Article 4 of the UK GDPR. Organizations will be able to dispense with balancing the organization’s legitimate interests against the rights and interests of the data subject under certain scenarios.
• Senior Responsible Individual (SRI): The Bill replaces a data protection officer with a SRI (only required for public bodies or where processing poses a high risk to individuals) who will be responsible for data protection risks within their organization.
• Article 27 Representation: Data controllers and processors that are not established in the United Kingdom will no longer be required to appoint a representative under Article 27 of the UK GDPR.
• Data Flow and Adequacy Regulations: The Bill creates a new adequacy regulations test, which is designed to allow more countries to be recognized as providing an adequate level of data protection, thus easing international data transfer restrictions. Restricted transfer is important.
• Information Commissioner’s Office Reform: All roles and functions of the ICO will be transferred to a new Information Commission.
• Direct Marketing Fines and Cookie Rules: Fines for breaching the direct marketing rules will increase considerably. The Bill increases the exemptions for which “consent” is required to place cookies on a user’s terminal equipment.

EU GDPR Changes

• New GDPR Procedural Regulation: Proposed by the EU Commission in July 2023, this regulation aims to standardize and streamline cooperation between EU Member State Data Protection Authorities (DPAs) when enforcing the GDPR in cross-border cases. This seeks to address procedural divergence and ensure consistent application of the GDPR throughout the EU.
• Application and Key Requirements: The Regulation will apply in enforcement cases involving cross-border processing. It lays down procedural rules for the handling of complaints, the conduct of investigations by DPAs, and sets out various procedural rights and obligations.

These changes reflect a continued effort to balance the protection of individual data rights with the practical needs of businesses, particularly in the context of cross-border operations and technological advancements. For financial services firms operating in both the UK and the EU, understanding and adapting to these changes is crucial for maintaining compliance and leveraging data effectively within the regulatory framework.Compliance with the latest GDPR changes in the UK and EU is essential for several reasons:

• Legal Compliance: Adhering to GDPR regulations is a legal requirement. Non-compliance can result in significant fines and legal repercussions.
• Data Protection and Privacy: GDPR is designed to protect personal data and privacy rights of individuals, which is crucial in today’s data-driven world.
• Trust and Reputation: Compliance demonstrates a commitment to data protection, enhancing trust among customers and stakeholders.
• Cross-border Data Flow: For businesses operating in multiple jurisdictions, compliance ensures seamless data flow and operations across borders.
• Risk Management: Complying with GDPR helps mitigate risks associated with data breaches and misuse of personal data.
• In summary, GDPR compliance is not only a legal obligation but also a key component of responsible business practices and risk management in the financial services sector.