New EU regulations on data breaches will impact UK companies no matter the outcome of the EU referendum on 23 June, according to a speaker at a Beazley conference held in London.
The Beazley cyber specialist suggests that there has been an increase of interest in cyber protection from UK businesses since the recent release of the EU General Data Protection Regulation, carrying fines of up to 4 percent of annual turnover, or €20 million, for mishandling data breaches.
Hans Allnutt, head of the cyber risk and breach response team at international law firm DAC Beachcroft, claims there are three reasons why if Brexit were to occur, it will “not let British businesses off the hook”.
Allnutt believes that in the event the UK leaves the EU, any British firm doing business in Europe will still be exposed to the new EU regulation, including the risk of heavy fines for mishandling data and data breaches.
He also claims that post-Brexit, it is likely that Britain would have to either adopt the new regulation or similar provisions to remain globally competitive.
Finally he explains that Britain's own domestic regulator, the Information Commissioner’s Office has previously campaigned for higher data protection standards and increased sanctions for breaches.
Allnutt predicted, “a tightening of data protection regulation in Britain is inevitable regardless of the referendum outcome.”
