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Organisations face fines of up to 10% of annual global turnover or £18 million (whichever the greater) for failure to comply.

By Gail Crawford, Rachael Astin, Alain Traill, and Katie Henshall

On 15 December 2020, the UK government published its full response to the Online Harms White Paper consultation, which sets out final proposals for the new regulatory regime. The response confirms that companies in scope will face a range of new obligations relating to both illegal and harmful content, in addition to the threat of significant fines and other sanctions in the event of non-compliance. The proposed regulatory framework will be introduced in 2021 in the form of the Online Safety Bill.

The response comes more than a year and a half after the Home Office and the Department for Digital, Culture, Media and Sport (DCMS) first published the Online Harms White Paper in April 2019, which proposed a new compliance and enforcement regime to tackle online harms. In February 2020, the government set out preliminary details of the proposed regulatory regime as an initial response to the white paper. For background to this consultation, see Latham’s previous blog posts (White Paper launch; government interim response).

Insights from Latham’s flagship event: Managing the risk and promise of digitisation in financial services

Authors: Andrew Moyle, Nicola Higgs, Christian McDermott, and Kirsty Watkins.

The financial services industry is leading the way in outsourcing, with contract values in excess of US$10.7 billion in 2018, causing regulators to focus more than ever on the associated risks. Guidelines on outsourcing arrangements from the European Banking Authority (EBA), which came into effect on 30 September 2019, expand the requirements on institutions in this area, while both the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) are also increasing their outsourcing supervision and enforcement activity.

We discussed the new requirements for financial institutions to maintain a register of outsourcing arrangements, and adhere to more stringent risk assessment and due diligence requirements at our recent event entitled Balancing the Scales: Managing the Risk and Promise of Digitisation in Financial Services.