Financial Conduct Authority-authorised firms and insolvency practitioners have been warned to be responsible when dealing with personal data, in a joint statement by the FCA and the Information Commissioner’s Office.
The warning comes after some firms and practitioners attempted to sell client’s personal data to claims management companies, either before or after a company has gone into administration and when claims for compensation may be made to the FSCS.
These actions are likely to fall foul of the Data Protection Act and GDPR. Even if consent has been given, data can only be shared for the specific processing purposes the data was obtained for.
If you’re looking to sell personal data to claims management companies, you should ensure the buyer is going to process the data in compliance with the law:
- They must use the personal data for the purpose for which it was collected
- They must seek consent from the person whose data it is before using their data for any other purpose.