Cyberattacks against law firms are one of the biggest threats facing the legal industry, with the number of successful cyberattacks against UK law firms on the rise. Law firms are known to hold vast amounts of sensitive personal and financial data, making them prime targets for cyber criminals.

Law firms must take their compliance with GDPR obligations seriously and detail how their data is protected, ensuring that robust and effective policies, controls and procedures have been implemented. Without appropriate cyber security defence measures, firms leave themselves open to data security threats and sanctions from industry regulators for breaching the requirements.

Below, our compliance team takes a closer look at the requirements and steps firms should be taking to ensure they are meeting regulatory requirements.

Data Protection – Your Responsibility

Law firms are entrusted with sensitive and confidential information from their clients and staff, making managing, controlling, and protecting data an essential element of their compliance and regulatory strategy. Firms should also be mindful that  Rule 4.2 of the Code of Conduct for individuals and Rule 5.1 of the Code of Conduct for firms, places an obligation on the profession to ‘safeguard money and assets entrusted to you by clients and others’.

A failure to implement the necessary policies and procedures to manage, control, and protect this data can result in severe consequences for law firms. Not only will they be in breach of legislative requirements, but they will also be in violation of their SRA code of conduct. These failings will put them at risk of facing regulatory scrutiny and could expose them to reputational damage. Read our previous article – Cyber Security Failures Leave Firm in Hot Water with ICO.

Policies, Controls and Procedures

To ensure that they comply with the requirements set out by UK General Data Protection Regulation (the UK GDPR), the Data Protection Act 2018 (the Data Protection Act), and the EU GDPR, law firms must have appropriate data protection policies in place. These policies should be designed to manage and control the significant amount of personal data that law firms handle regularly. As standard practice, firms should implement and approach policies that include:

• A data protection policy that details how the firm protects, uses, and manages data.
• A data protection notice that is issued to clients confirming how the data is used, protected, and processed.
• An IT Security policy that sets out how the firm manages and controls cyber risks
• Training for staff on the firm’s policies and procedures.
• Consent (Positive opt-in) for the use of data.
• A Data (GDPR) annual audit to establish the effectiveness of the firm’s data protection approach.

Appointment of a Data Protection Officer

One of the other requirements of GDPR is that firms that handle sensitive personal data on a large scale must appoint a Data Protection Officer (DPO). However, determining what constitutes “large scale” can be subjective and may vary depending on the size and nature of the firm. You can read guidance from the Law Society here: Appoint A Data Protection Officer (DPO)

Regardless of who is responsible for data protection, firms need to appoint someone who is knowledgeable in data protection law and understands how the firm collects and uses data. This may involve collaboration between different departments within the firm, such as marketing and IT, and may require the advice of an in-house data protection lawyer or external specialist.

It is essential that the data protection lead instils good practices throughout the firm. This role requires not only personal expertise and authority but also support and commitment from the firm’s management team.

If a firm is legally required to have a DPO and resources or expertise are unavailable in-house, it can appoint an external service provider to fulfil the role, such as the compliance specialists at The Regulation and Compliance Office. We work with firms of all sizes to implement effective data protection policies, controls, procedures, and GDPR Audits as part of an overall compliance structure.

By taking these steps, firms can ensure they are complying with GDPR and protecting the privacy of their customers’ personal data.

Completing A Data Protection Audit

While it may not be possible to completely prevent a data breach from occurring, firms must be prepared to respond appropriately and in accordance with regulatory guidelines. It is mandatory for firms to periodically review their compliance with GDPR to identify any gaps in their security measures. However, no clear guidance exists on how often such reviews should be conducted.

That said, firms would be advised to conduct a review at least once every two years or annually for larger organisations to ensure they are always up to date with the latest regulations and standards. Failure to comply with GDPR can result in severe consequences such as SRA investigations, Data commissioner investigations, Negligence, and damage claims.

GDPR and Data Protection Audit Services

The Regulation and Compliance Office provides GDPR and Data Protection Audit Services that will provide an assessment of the Firm’s data protection practices and compliance with the UK GDPR and Data Protection Act 2018.

Our GDPR audit will provide the firm’s management with the confidence of knowing that it is compliant with the requirements of the regulation and can demonstrate such compliance. We will identify any issues or concerns along with knowledge gaps and provide solutions and proposals to rectify these. Download our brochure to find out more about these services.

Reach Out to RACO

For more information on the Regulation & Compliance Office and how we can assist in accelerating your risk management, compliance and regulation, call us on 0203 985 8550 or email us at info@regulationandcomplianceoffice.co.uk