Fleet and leasing software provider Sofico has advised its motor finance, leasing, fleet and mobility clients to prepare for changes to EU data protection rules.
The EU General Data Protection Regulation (GDPR) is due to come into effect in May 2018, and will apply to companies both based in the EU, and those based abroad who conduct business in the union.
The rules will legislate around which personal data can be collected and how long it can be held. The GDPR forms part of the European Commission’s plan to create a digital single market. Among the measures, the right ‘to be forgotten’ will be addressed, and creates tighter limits on the use of personal data.
Companies can be fined for non-compliance, with infringements potentially resulting in fines of up to €20m or 4% of the company’s total annual turnover worldwide, whichever is higher. Sofico said businesses would find it a challenge to satisfy the requirements.
Gémar Hompes, managing director of Sofico, said software release cycles meant there was limited time for leasing and captive finance companies to ensure that they comply with GDPR by the deadline.
He said: “Our customers are working with us to proactively review the impact that the new regulations will have on their set-up for Miles. This will allow our customers to comply with the new regulation by the time it takes effect next year.”
Sofico created a project team for issues related to GDPR, and has begun to review areas such as data security and documentation of processes.
Gémar added: “Our objective is to ensure that all our customers are fully prepared for the implementation of the GDPR and are fully conversant with all the requirements of the new regulation by the deadline of May next year.”