Financial Conduct Authority (FCA) UK Regulation Sample Exam

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How long should personal data be held according to the Data Protection Act 2018?

No longer than necessary
Forever if it’s securely stored
At least five years
Until the client requests its deletion

The correct answer is: No longer than necessary

The principle of holding personal data "no longer than necessary" is rooted in data protection laws including the Data Protection Act 2018. This act emphasizes that organizations should only retain personal data for as long as it is needed for the purpose for which it was collected. This means that once the purpose has been fulfilled, or if the data is not needed anymore, it should be disposed of securely to prevent any unauthorized access or misuse. The rationale behind this principle is to minimize the risks associated with data breaches and to respect individuals' privacy rights, ensuring that their personal information is not kept longer than essential. In contrast, retaining data indefinitely, even if securely stored, does not align with the principles of data protection and can expose organizations to potential legal and reputational risks. Similarly, arbitrary time frames, such as "at least five years," do not account for the specific purpose or necessity of holding the data, which can vary greatly from one case to another. The notion of deleting data only upon a client's request also does not comply with the proactive requirements of the law, as organizations are required to assess their data retention policies routinely, rather than relying solely on client prompts.