In this era of globalisation, data is becoming increasingly important both economically and socially. Businesses across the globe are using data in new and innovative ways, and individuals utilise their data for communications and the purchase of good and services.

The Channel Islands are no different in this respect and with finance industries that account for a significant percentage of GVA as well as emerging digital sectors, being seen as a well-regulated, safe jurisdiction in respect of data is crucial.

The EU Directive currently in force (click here to view)

• Sets out the rules for the EU Members States about the processing of personal data.
• Places control on the transfer of personal data outside of the EU.

For data to be freely transferred to third countries, such as the Channel Islands, the Directive provides for a finding of ‘adequacy’.

Both Jersey and Guernsey have secured an ‘adequacy’ status under the Directive (click here to view) which has meant that data can be transferred without hindrance to the Islands from the EU Member States.

In May 2018 the Directive will be replaced by the GDPR (click here to view)

• It aims to strengthen individuals rights and harmonise compliance.

• It also echoes the Directive regarding the export of personal data and the adequacy provisions.

The Channel Islands have taken the decision to implement equivalent legislation for implementation at the same time. This will ensure

• The Islands are well placed to secure a positive adequacy position at the earliest opportunity.
• That business is not faced with different compliance standards locally and in the EU.
• Data protection rights of local citizens in this digital, internet era is up-to-date

Law drafting will commence early 2017, and the Islands are working together on an implementation project to ensure government, the regulator and industry are well prepared for the changes.