Even plans made with the best of intentions can go awry. In a speech made last week, Mark Hoban, a former Minister of State for Work and Pensions, floated the idea of combining previously separate personal financial information into a single database.
Mr Hoban argued that “It would be great if we could use the Retirement Saver Service to store data on their savings, pensions – state and private – and housing”. The idea is that it would give individuals a clearer idea of their current savings situation as well as helping to signpost any necessary action they would need to take in the future.
At the moment the regulatory framework simply isn’t good enough to ensure that another new database would be secure. The sanctions that are available for punishing those who misuse personal information and break the Data Protection Act 1998 are almost non-existent. At present the most any breach will receive is a fine, there is no option for a court to hand down a custodial sentence. When compared to the financial gains that can be made through selling the information on, a, usually small, fine cannot be considered to be an effective deterrent.