Introduction

With the UK’s decision to leave the European Union, commonly known as Brexit, a wave of regulatory challenges is expected to hit various sectors. This article explores the potential impact of Brexit on data compliance for South African companies and emphasizes the importance of data governance in navigating these changes and ensuring data integrity.

The Aftermath of Brexit

The aftermath of Brexit has already shown significant impacts, such as the plummeting pound and its influence on other currencies, including the rand. The regulatory impact of Brexit is projected to be equally severe. According to a study by independent think-tank JWG, the uncertainty and necessary regulatory changes brought about by Brexit could cost at least £17 billion over the next decade. This cost is associated with the need for the UK financial sector and other industries to adapt existing legislation due to the absence of reliance on existing EU treaties.

Compliance Challenges for South African Companies

South African companies that conduct business with both Europe and the UK are likely to encounter additional rules and regulations. These may pertain to financial compliance, anti-money laundering, risk management, and privacy, among others. As a result, complying with these new requirements becomes crucial for businesses to continue their operations smoothly.

The Role of Data Governance

To address the challenges posed by Brexit and the evolving regulatory landscape, a robust data governance centre emerges as a vital solution. Having an extensible data governance framework allows companies to quickly understand the impact of compliance changes on their data. Moreover, it facilitates the reuse of existing data assets and simplifies communication with regulators regarding compliance measures.

Strengthening Risk Management

In the short term, the uncertainty stemming from Brexit amplifies the significance of risk management regulations, such as stress testing and BCBS 239. It is now more critical than ever for South Africa to demonstrate the stability of its financial sector and reaffirm its position as a relatively safe investment option.

Embracing Long-term Viability

As emotions settle and uncertainties clear, South Africa aims to establish itself as a viable investment choice, regardless of the Brexit aftermath. A focus on long-term viability and compliance will be key to retaining investor confidence and sustaining economic growth.

Conclusion

Brexit undoubtedly brings forth a new era of regulatory challenges for businesses, both within and beyond the UK and EU. South African companies must brace themselves for potential changes in compliance requirements and diligently adapt their data governance strategies. By doing so, they can navigate the evolving landscape of data compliance, ensure data integrity, and secure their position as attractive investment prospects.