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Data Protection: Warning to insolvency practitioners on sales of personal data

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The Financial Conduct Authority (FCA), the Information Commissioner's Office (ICO) and the Financial Services Compensation Scheme (FSCS) have issued a joint statement re-iterating the need for insolvency practitioners and other FCA-authorised firms to be responsible and careful when dealing with personal data. Particular reference was made to the potential unlawful sale of client’s personal data to claims management companies for the purposes of marketing potential claims for compensation, with the FSCS involving companies that have or are likely to go into administration.

The joint statement stressed the likelihood that a standard contract would not constitute sufficient legal consent for personal data to be shared for marketing purposes. In turn, this may not be lawful and in breach of the Data Protection Act 2018 (DPA) and the General Data Protection Regulation ((EU) 2016/679) (GDPR). Moreover, claims management companies who carry out direct marketing using the personal data are likely to be in breach of the Privacy and Electronic Communications Regulations 2003 (SI 2003/2426) (PECR).

This article has been published as part of the latest issue of our Commercial Brief, detailed within the In Brief section. You can view the other In Brief articles below:


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