The General Data Protection Regulations or GDPR will take effect on May 25, 2018 on all the member states of the European Union. But a financial expert says that the rules and regulations of this GDPR will not only affect all the corporations inside the EU, but will also impact the corporations in other countries that transact with them.
The main objective of the GDPR is to confirm that it is a fundamental right of an individual to have his personal data protected. The regulations underlined in the GDPR also introduce the idea of privacy “by default or design.” Basically, the GDPR is a re-formatting of principles and security obligations stated in the present Data Protection Directive of the EU.
As corporations, inside and outside of the EU, go into the legislation’s transition period, they will need to examine their attitude towards data protection. They need to analyze the gaps between their current processes in relation to the new regulations, and then make improvements or changes that are necessary to be able to show compliance by or even before May 25.
A leading analyst from GoBuyside voiced out the broader impact that companies can expect the GDPR will have on the industry of fund management. This company is a proponent of the 21st century recruitment platform that is focused mainly on the financial sector. The financial expert started by saying that the coming GDPR will also apply to companies outside of the European Union. In contrast, current data protection in the EU only applies to corporations inside the union. The GoBuyside analysis says that non-EU corporations with data processing activities related to offering of goods and services to corporations or individuals within the union will also be required to comply with the new GDPR rules.
He continues by saying that management firms, investment fund companies, fund administrators, depositaries and alternative investment fund managers will have to examine the way they process or control personal data. They should do this whether the data is related to their officers and employees or their investors. He added that they need to make sure that in every case, their data collecting processes are in compliance with what the new GDPR regulations say.
The GoBuyside financial expert also added that appropriate agreements, notifications security and transfer arrangements must be put in place by all affected corporations, inside and outside of the EU, to make sure that the fundamental freedoms and rights of individuals are laid out in compliance with the upcoming GDPR.