The issue of data transfers is one of the top three worries around Brexit for UK financial services firms, according to polling commissioned by the EY consultancy.
EY has warned that firms need to ensure they do not breach data rules in the event of a no-deal Brexit or risk a fine of up to 4% of turnover or €20 million, whichever is the highest.
The warning comes as EY launches a guide for financial services firms around last minute preparation for a possible no-deal Brexit.
A no-deal Brexit, the firm says, would mean personal data cannot be sent from the EU to the UK unless firms have taken specific mitigating action.
The issue has arisen as the European Commission has said it would not provide immediate data adequacy for the UK in the event of a no-deal.
EY’s polling, carried out in February, found almost a quarter (24%) of firms see the issue of data transfers as one of their top three worries around Brexit.
Steve Holt, financial services partner at EY, said: “UK financial services firms spent large amounts to get ready for GDPR but they must again ensure that their data systems are ready for a possible no-deal Brexit.
“With fines of 4% of turnover as well as the reputational damage of any misstep, it should be a key priority. Many firms have already addressed this, but time is running out for those yet to have taken the necessary steps.”
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