About a-team Marketing Services
The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Next Year’s European Data Privacy Reforms Could Potentially Have a Significant Impact on Data Storage and Access

Subscribe to our newsletter

The UK government has this month issued a call for evidence on the current European data protection legislative framework, ahead of European-wide negotiations on an update of the European Data Protection Directive 95/46/EC due at the start of next year. Reforms could potentially have a significant impact on the data storage and access requirements for financial institutions and therefore entail a reworking of firms’ current data warehouses and EDM systems.

The UK’s call for evidence, which is open until 6 October 2010, is asking for general feedback on the current data privacy practices and recommendations for improvement. At the same time as this information gathering exercise, the government has also published a provisional post-implementation review impact assessment of the Data Protection Act 1998, on which it is also asking for comments.

The call for evidence has broken down the areas in which the government is seeking feedback upon into seven categories: definitions; data subjects’ rights; obligations of data controllers; powers and penalties of the Information Commissioner; the principles-based approach; exemptions under the Data Protection Act; and international transfers. In terms of impact, the move from a principles-based approach to a more prescriptive environment could potentially significantly alter financial institutions’ obligations and data management practices.

The politicians are keen to revise these requirements, however, as it has been 15 years since the European directive was passed and technology has moved on substantially since that time. The legislation will therefore need to take into account trends such as the storage of data in the cloud and mobile technology in order to better address data privacy risks posed by these technological innovations. The call for evidence notes: “It is important that any new legislative changes take into account the way technology is advancing, enabling it to be ‘future proofed’ as far as possible.”

Data managers will need to keep a close eye on developments, as they happen and feed back any recommendations to the relevant bodies in their jurisdictions in order to ensure data privacy requirements to not become overly prescriptive and difficult to navigate. The likelihood is that many new requirements will spring from the updated directive and these could mean extra security measures, but they could also mean the reworking of current EDM systems to separate different levels of data by the nature of its customer sensitivity.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Adding value and improving efficiencies in sanctions screening

Sanctions have been headline news this year. They are growing in number, sanctions lists are changing on a daily basis, and there can be conflict between sanctions issued by different jurisdictions – the whole calling for financial institutions to optimise sanctions screening to reduce risk and avoid potentially punitive penalties of non-compliance. This webinar will...

BLOG

Sanctions Against Russia Mean Screening is More Vital than Ever

By Collette Allen, Client Services Director, SmartSearch. Firms should take action to review their due diligence and sanctions screening procedures to avoid falling foul of extensive new and emerging sanctions against Russia. The wide-ranging sanctions imposed so far by Western nations include restrictions against individuals, entities and their subsidiaries, and the introduction of legislation to...

EVENT

TradingTech Summit Virtual (Redirected)

Trading Tech Summit (TTS) Virtual will look at how trading technology operations can capitalise on recent disruption and leverage technology to find efficiencies in the new normal environment. The crisis has highlighted that the future is digital and cloud based, and the ability to innovate faster and at scale has become critical. As we move into recovery and ‘business as usual’, what changes and technology innovations should the industry adopt to simplify operations and to support speed, agility and flexibility in trading operations.

GUIDE

Trading Regulations Handbook 2022

Welcome to the third edition of A-Team Group’s Trading Regulations Handbook, a publication designed to help you gain a full understanding of regulations that have an impact on your trading operations, data and technology. The handbook provides details of each regulation and its requirements, as well as ‘at-a-glance’ summaries, regulatory timelines and compliance deadlines, and...