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Question 163 - CIPP-US discussion

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A company based in United States receives information about its UK subsidiary's employees in connection with the centralized HR service it provides.

How can the UK company ensure an adequate level of data protection that would allow the restricted data transfer to continue?

A.

By signing up to an approved code of conduct under UK GDPR to demonstrate compliance with its requirements, both for the parent and the subsidiary companies.

Answers
A.

By signing up to an approved code of conduct under UK GDPR to demonstrate compliance with its requirements, both for the parent and the subsidiary companies.

B.

By revising the contract with the United States parent company incorporating EU SCCs, as it continues to be valid for restricted transfers under the UK regime.

Answers
B.

By revising the contract with the United States parent company incorporating EU SCCs, as it continues to be valid for restricted transfers under the UK regime.

C.

By submitting to the ICO a new application for the UK BCRs using the UK BCR application forms, as their existing authorized EU BCRs are not recognized.

Answers
C.

By submitting to the ICO a new application for the UK BCRs using the UK BCR application forms, as their existing authorized EU BCRs are not recognized.

D.

By allowing each employee the option to opt-out to the restricted transfer, as it is necessary to send their names in order to book the sales bonuses.

Answers
D.

By allowing each employee the option to opt-out to the restricted transfer, as it is necessary to send their names in order to book the sales bonuses.

Suggested answer: B

Explanation:

The UK company can ensure an adequate level of data protection for the restricted data transfer to the US parent company by using the EU Standard Contractual Clauses (SCCs), which are contractual terms that provide safeguards for personal data transferred from the UK to third countries. The UK GDPR recognizes the validity of the EU SCCs adopted before the end of the Brexit transition period, and allows the UK Information Commissioner's Office (ICO) to issue new SCCs in the future. The other options are not correct because:

A . Signing up to an approved code of conduct under the UK GDPR is not sufficient to ensure an adequate level of data protection for restricted transfers, as it is not a transfer mechanism on its own. The UK company would still need to use another appropriate safeguard, such as SCCs or Binding Corporate Rules (BCRs), to transfer personal data to the US parent company.

C . Submitting a new application for the UK BCRs is not necessary, as the UK GDPR recognizes the existing authorized EU BCRs as valid for restricted transfers from the UK. The UK company can continue to rely on its EU BCRs, as long as they are updated to reflect the UK GDPR requirements and the role of the ICO as the competent supervisory authority.

D . Allowing each employee the option to opt-out to the restricted transfer is not a valid transfer mechanism under the UK GDPR, as it does not provide adequate safeguards for the personal data of the employees. The UK company would need to obtain the explicit consent of each employee for the restricted transfer, which must be freely given, specific, informed, and unambiguous.Reference:

UK GDPR, Chapter V, Article 46

UK GDPR, Chapter V, Article 47

UK GDPR, Chapter V, Article 49

ICO guidance on international transfers

IAPP CIPP/US Study Guide, Chapter 10, Section 10.3.2

asked 22/11/2024
Adnan Safdar
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