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30 November 2017

Rapid action called for on cross border data exchange post Brexit

UK Finance and techUK are urging the UK Government and EU to prepare a mutual adequacy agreement to enable the continuing protection for cross-border exchange of personal data between the two regions by customers and businesses post Brexit.

Calls for rapid action on cross border data exchange post Brexit JMiks

In a joint report commissioned from international law firm Dentons - No Interruptions: options for the future UK-EU data sharing relationship - techUK and UK Finance set out how mutual adequacy agreements between the UK and EU, preceded by a transition period maintaining current arrangements for a set period, would preserve the strong working relationships already in place and offer businesses much-needed regulatory certainty. Partner Martin Fanning of Dentons said: ‘In a connected world data is ubiquitous and data protection considerations are paramount - this analysis assists all sides of the Brexit debate, and across all sectors, to examine the challenges posed in relation to the free flow of data.’

Lose automatic legal framework

When the UK leaves the EU in March 2019, it will lose the automatic legal framework for the free flow of personal data.  Unless a new arrangement is agreed, transfers of personal data across Europe will be severely limited – requiring alternative mechanisms which can be costly or complex – or stop, potentially at huge financial cost for both economies, said the report.  It added that it was in the interests of both the UK and EU27 to act on this issue as soon as possible.

Four key actions

The report suggests that the outcome requires a number of actions. Firstly, both the EU and the UK should begin their adequacy assessment processes as soon possible.Secondly, a stand still transitional arrangement for a set term in order to avoid a ‘cliff-edge’ in the movement of personal data should be agreed immediately. Thirdly, the report suggests that the UK should consider implementing additional measures to ensure that any EU concerns about the UK’s data protection framework are addressed, particularly regarding processing of data for UK national security purposes. Fourthly, the UK should ensure that its international and ‘onward transfer’ regimes, including with the US, provide equivalent levels of protection to those set out in the EU’s regime as this will form a key part of the EU’s adequacy assessment.


Stephen Jones, CEO, UK Finance said: ‘It may not always be obvious, but every aspect of our economy as well as our everyday lives rely in some way or another on data. In its current form, the EU’s interconnected regulatory environment facilitates millions of vital data exchanges every today. Leaving this relationship will result in significant changes and time must be allowed for new agreements to be put in place. The UK and EU should implement transitional arrangements maintaining the status quo to give both sides time to agree how they will deliver high standards of data protection, allowing both communication and trade to flourish.’


Julian David, CEO, techUK said: ‘The UK and EU must recognise each other’s data protection frameworks as adequate as soon as possible. This should be a priority for Phase Two of Brexit negotiations. This isn’t solely for the benefit of one industry or one country but for the whole European economy as cross-border data flows become ever more important for trade and the ability to do businesses.’

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