International Data Transfers - Brexit And Schrems II: Impact For Funds

There have been several recent developments in connection with international data transfers.  The most significant of these are the conclusion of the EU-UK Trade and Cooperation Agreement on 31 December 2020¹ and the European Court of Justice's "Schrems II" decision².  This briefing considers the implications of both for investment funds.

EU-UK Trade and Cooperation Agreement

While there is widespread relief that the EU-UK Trade and Cooperation Agreement was concluded before the expiry of the Brexit transition period, the provisions on data transfers to the UK provides only a temporary reprieve for such transfers.  

Following the end of the Brexit transition period on 31 December 2020, the UK became a "third country" for GDPR purposes.  This would ordinarily mean that all transfers of personal data to the UK would (i) be treated as transfers outside of the European Economic Area ("EEA"); and (ii) need to satisfy one of the GDPR's transfer tools legitimising