While the long-term implications of Brexit are still uncertain, what is becoming clear is that there will be an impact on data privacy and security. As the UK exits the EU, it will have to develop a new set of data privacy and security laws. These will certainly have an impact on the UK’s finance sector as London has traditionally been the banking capital of the EU but a continuation of this status is very uncertain as banking, privacy, and security are very tightly coupled. Weakening the ‘security and privacy’ components will definitely hinder the flow of capital through the UK.
From a policy perspective there will no longer be digital-open-borders between the UK and the EU which will put burdens on both sides when determining privacy regulations and data security. Companies in the UK will have to review their existing policies regarding data protection and privacy. Current UK policies are viewed as lax in comparison to the EU Privacy Directive so one would assume that, without the directive, individuals in the UK will be less secure and data ‘less private’. This will lead to uncertainty as the UK attempts to re-draft UK-only privacy laws and then negotiate to align these with the EU regarding data privacy and security. So the outlook for robust data privacy and security laws in the near-term is fairly remote. I would expect to see unscrupulous companies taking advantage of this gap and test the boundaries of data privacy at the expense of the consumer.
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