EU recognises UK data protection laws

Following on from a draft decision in February, the European Commission has now granted the UK access to EU data.

The commission has formally recognised that UK data protection rules are “adequate” and that personal data can therefore flow in both directions between the EU to the UK.

This removes one more difficulty for UK firms post BREXIT. However, the adequacy decision is limited to four years and will be reviewed at the end of that period.

What next?

Well maybe not very much! The EU withdrawal agreement was primarily about trade. Services, and particularly financial services, did not feature much in the negotiations. Commentators have long felt that the EU will eventually recognise UK financial services regulations as ‘equivalent’. And there is no reason why that would not be the case as clearly, up until the end of 2020, they absolutely were. It is believed that the EU would prefer the UK to continue to adopt EU regulations whereas the UK prefer ‘equivalence’ as it does not mean automatic adoption of all EU regulations in this area. There are indications that the UK might not even hold out for equivalence and simply go its own way.

Meantime, the UK and the EU have reached an agreement in a move that could pave the way for future market access rights for the UK following EU withdrawal. Technical discussions on the text of the agreement, known as a memorandum of understanding, have now been concluded.

Under the agreement, a Joint UK-EU Regulatory Forum will be established to facilitate dialogue between the two entities regarding financial services issues. In the absence of equivalence, the agreement will create a framework that will allow for voluntary regulatory cooperation between the UK and the EU.


Important Note: ATEB news is intended to provide general information ONLY. The content, including any views expressed or guidance provided, does not replace the need to comply fully with FCA Rules and Guidance. Unless you have discussed news article content with ATEB, and specifically how it relates to your circumstances, then ATEB disclaims all liability and responsibility and actions arising from any reliance placed upon it. For the avoidance of doubt therefore, any reliance you place on such information without our consultation is at your own risk.

ATEB Compliance offers compliance and regulatory advice.

ATEB Suitability provides report writing software for the financial services market.

Our View

For information.

Action Required By You

For information.
SUIT - Beautiful Reports
SUIT - Complete Control
SUIT - Comp confidence
previous arrow
next arrow

About the Author

With a wealth of consultancy experience, we like to think that Huw has aged well, like a fine wine. Considered and practical in his approach, he will help you to demystify the complex world of regulation and provide a sympathetic shoulder to lean on.

Contact Us

Brought to you by

Explore more articles in this category

Other articles that you might be interested in