The FSA refers to Data Security (also known as information security) as the way that firms put in place systems and controls to prevent their consumers' personal details, such as address, date of birth, national insurance number, earnings, account details, etc, from being accessed by criminals.  Firms have legal and regulatory responsibilities to safeguard their consumers' data.

In the UK, the Data Protection Act is used to ensure that personal data is accessible to those whom it concerns, and provides redress to individuals if there are inaccuracies. This is particularly important to ensure individuals are treated fairly, for example for credit checking purposes. The Data Protection Act states that only individuals and companies with legitimate and lawful reasons can process personal information and cannot be shared.

In April 2008, the FSA’s Financial Crime Operations published its findings following thematic work looking at the controls around personal customer data.  It concluded that poor data security is a serious and widespread problem in the financial services industry.

To assist firms in understanding the issues and ensuring relevant controls are in place, the FSA have published a factsheet. The Factsheet is not exhaustive and will need expanding upon, depending on your activities and the size of your business.

We can assist in identifying weaknesses in your Data Security systems and controls and recommend simple and effective solutions to rectify them.  If you need help, please contact us.