Changes to data protection laws to unlock post-Brexit opportunity

Various UK government agencies recently published a statement in which they announce targeted amendments to the Data Protection and Digital Information Bill. The bill contains provisions to adjust the UK data protection rules and regulations to the needs of the UK following Brexit with the aim of simplification and moderation.
While most provisions of the bill and modifications thereto are irrelevant for financial market participants, we do want to point out one reform that will have an impact on financial institutions. According to the latest press statement, amendments have recently been made to the bill to „include new powers“ to require financial institutions, including banks and financial organizations, to „help the UK government reduce benefit fraud“. Specifically, the UK government would be allowed to conduct „regular checks“ on bank accounts owned by benefit claimants to help detect benefit fraud which may be indicated by increased savings beyond allowed thresholds. According to the statement, „only a minimum amount of data will be accessed and only in instances which show a potential risk of fraud and error“.