RSM urges dealers to prepare for GDPR

Accounting firm RSM has urged dealers to prepare for the EU General Data Protection Regulation (GDPR).

RSM urges dealers to prepare for GDPR

Accounting firm RSM has urged dealers to prepare for the EU General Data Protection Regulation (GDPR).

The regulations are due to come into force on 25 May 2018, and RSM advised dealers to prepare themselves to prevent financial losses and risks to their reputation resulting from non-compliance.

GDPR will require data processors and their third-party contractors to protect the data of individuals, an extension from the EU’s 1995 data protection regulation, which placed liability on the data controllers alone.

Failure to comply could see businesses face fines of up to €20m, or 4% of annual global turnover, whichever is greater.

RSM said that dealers must ensure their data processes protect individuals’ data rights, and advised that they adopt an organised data protection programme, which records all data activities.

Steve Snaith, technology risk assurance partner at RSM, cited the recent WannaCry ransomware attack, and said that more safeguards were needed. He added that GDPR would drastically affect the future of storing personal data, and warned of business disruption.

Snaith said: “It’s increasingly more important to make sure clear processes and safeguards are put in place to protect both clients and companies.

“Businesses must make sure they are ready for what lies ahead and not get caught out, as the financial and reputational risk could be significant.”