The UK’s Data (Use and Access) Bill is set to introduce significant changes to UK GDPR, the Data Protection Act 2018, and PECR, reshaping data governance requirements and increasing fines for non-compliance. For accountants, who often act as independent controllers of client data, these changes bring greater regulatory exposure and an urgent need to strengthen data governance frameworks.
The CEO of Friday Initiatives, Lauren Murphy, recently discussed these reforms with The Institute of Financial Accountants' magazine Financial Accountant, exploring what they mean for firms operating across jurisdictions and how accountants can proactively safeguard data.
These changes aim to streamline compliance, but they also heighten the risk landscape for businesses handling sensitive financial and client data. For accountants, the key challenges include:
Increased penalties for non-compliance, making robust governance a business imperative.
Greater scrutiny on data controllers, requiring a proactive approach to managing client information.
New obligations around AI-driven technologies, ensuring responsible and compliant data usage.
To stay ahead of regulatory changes, accountants should adopt a governance-first mindset. This involves:
Strategic Data Governance – Moving beyond compliance checklists to align data practices with client expectations and organisational risk tolerance.
Comprehensive Data Mapping – Understanding what data is held, how it’s used, and where it’s stored to ensure security, compliance and also value.
Privacy by Design – Embedding privacy principles into workflows and technology, particularly in the development of AI-driven initiatives.
While compliance is essential, it should be the byproduct of strong governance, not the goal. A well-structured data governance strategy ensures that data is not only protected but also effectively utilised, maximising its value while minimising risk.
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