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Digital Wealth Asia Forum 2019 HK - Exclusive Insights - Hin Han Shum

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1. What are the regulatory and compliance challenges in Hong Kong?

Video transcript

1. What are the regulatory and compliance challenges in Hong Kong?

One of the key challenges now relates to how the data is used, because with any new technological tools that are used in a business, there's going to be a lot of data collected. For example, artificial intelligence relies on big data. Data bias might be a cause of liability and negligence, if there is incorrect advice given, or if there is inaccurate or un-updated information. So, this is negligence and liability on one part. There's also data privacy regimes that we need to comply with. In Hong Kong, we have the personal data privacy regime under the PDPO, Personal Data (Privacy) Ordinance, but if we have EU clients, we also have to deal with the GDPR, which is the General Data Protection Regulations. Those were recently enforced last year, as of May, and their sanctions are far and wide. It's cross territorial. If there's a breach, it's 4% of your annual turnover or EUR20 million, whichever is higher. So the sanctions will affect businesses, and for small businesses, it could cripple them. So it's important to ensure that, at the onset, you try to set up privacy by design systems, have proper privacy impact assessments in place, and just ensure that all in all, there is compliance or a system that's set up so that it mitigates the risk of any non-compliance.

 

 

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