Jessica Fino 23 Apr 2018 04:04pm

Quarter of finance businesses not ready for GDPR

Nearly one in four (23%) finance businesses don’t know if, or don’t expect they will be prepared for the new General Data Protection Regulation (GDPR) by the 25 May deadline

A survey by accounting recruitment agency Reed Accountancy & Finance found that 77% of businesses within the sector will be prepared in time, while 10% are partly prepared but do not expect to be ready before the deadline and 6% are yet to make any preparations. A further 7% do not know whether they will be prepared or not.

The majority (63%) of the 900 financial sector firms surveyed said they have been taking action with training sessions for employees and communicating the guidelines of the GDPR, and 53% have made changes to their procedures.

Moreover, 32% have updated their anti-virus and anti-malware software and 11% have even hired specialist staff as a result of upcoming GDPR.

Rob Russell, director of Reed Finance, said, “Any government policy threatening a fine of 4% of turnover or €20m (£17.5m) – whichever is highest – makes you sit up and take notice. GDPR deadlines should be front of mind, and the majority of businesses within our industry are ready to meet the deadline. However, our research shows there are a significant minority putting themselves at risk.”

Russell added that companies should look into implementing training for all employees to ensure they are prepared.

Back in January, Big Four firm EY said that that two thirds of global businesses were unprepared for GDPR, and the Institute of Directors in the UK said back in November that a third of directors have not even heard of GDPR.

Recruitment agency and London law firm Hamlins also found in June last year that the main reasons for the lack of preparation in the UK were believing Brexit would prevent businesses from having to comply (15%), not having the funds to comply (12%), considering there to be a business risk (11%) or not wanting to get caught up in red tape (10%).