The new EU General Data Protection Regulation (GDPR) in Europe, adopted in 2016, will be directly applicable starting on May 25, 2018. GDPR comes with significant changes compared to the Data Protection Directive 95/46/EC involving operational changes in organisations.
As a result, organisations need to be extremely aware of these changes as they can face very strict fines in the cases of non-compliance.
The most important change in data privacy regulation in 20 years, GDPR is a regulation issued by the European Commission, the European Parliament and the Council of Ministers of the European Union with the goal of improving data protection for individuals within the European Union.
The objective is to give citizens more control over how their personal data is used as well as provide firms with a clear legal and standardised structure within which they can operate.
Who is affected?
- Any firm who possesses or processes data pertaining to an identifiable person
- Any firm who contacts those individuals via email, phone, SMS or mail
- Any firm who tracks their engagement via e-shots, cookies, or landing pages for the purpose of profiling an individual
Essentially, the GDPR applies to ‘controllers’ and ‘processors’ that are handling the individual’s personal data. Article 4 of this regulation clarifies the different roles:
Controller: “the natural or legal person, public authority, agency or other body which, alone or jointly with others, determines the purposes and means of the processing of personal data”. i.e. specifies how and why data is processed
Processor: “a natural or legal person, public authority, agency or other body which processes personal data on behalf of the controller”. i.e. conducts data processing
Article 5 goes on to stipulate: ““The controller shall be responsible for, and be able to demonstrate compliance with the Principles”. So it’s an important job!
Consequences of non-compliance: We know this won’t apply to your good selves, but this is pretty officious with fines up to €20M or 4% of total worldwide turnover of the preceding financial year, and wait for it….whichever is higher..
So to bring this into our world and make sense of how to be GDPR ready and apply it to your firm, our #RegTech platform Model Office-MO tests for 7 principles:
MO’s #RegTech 7 GDPR principles:
- Data Lawfulness, Fairness & transparency: Open and Honest collection methodology with a clear and comprehensive website disclaimer
- Consent: The right to opt in/out: Your Clients rights to be forgotten, their data portability and erasure
- Purpose limitation: Attain client informed consent: Use data and timeframe as agreed by your clients
- Data minimisation: Gather client data that is needed only
- Accuracy: Cleanse client data to ensure its up-to-date
- Storage limitation: Your data retention policy and your criteria for deletion
- Integrity & confidentiality: Cyber-crime strategy, loss and unauthorised usage protection
So what’s next? Well, certainly you’ll want to give MO a go and then assess how your firm is impacted, then identify and assess your current data, its flow through your investment systems (Wrappers/platforms/centralised investment propositions) and practice management technologies.
By doing this, you can understand if your firm has the required tools to protect private data, or it will shed insight into the tools you may need to support your organisation in achieving GDPR compliance.
Conducting a MO audit and investing in solutions like data loss prevention/cyber protection (a blog for another day) can help get you to compliance faster. Treat compliance with GDPR as a project and (I hate to say it) hire a lawyer to ensure you adhere to all guidelines.
Model Office's (MO's) Your Systems key covers all the GDPR details you need to ensure you have a digital compliance and business audit review plus strategies and guidance on what to do next.
Please click the below icon link to MO's platform and learn more about MO today..