Question 1

Data Dilemma

Accepted Answer

Data Dilemma This is an issue worrying a number of our members Q (Member 1): As an RMC we hold personal records of the lessees and some suppliers of services. Are we obliged to register with the ICO (Information Commissioners Office) and pay an annual data protection fee based on turnover? I understand that The Data Protection (Charges and Information) Regulations 2018 require every business that processes personal information to pay a data protection fee to the ICO. Our RMC owns the freehold, has no employees, collects service charges and manages the block. Looking at the ICO website, it would seem we are not an 'exempt' body. I understand that the ICO's office is sending letters to all UK companies, registered with the Companies House, to register with ICO or face fine up to £4,000 unless done so by February 2020. Q (Member 2): We are a newly formed company following the acquisition of our freehold. We were previously an RTM. Our first full financial year ends this month. We have had a letter from ICO demanding an annual payment – data protection fee. Is this legitimate? We do not trade and hold email addresses for residents for usual communication. It refers to “real estate activities”. FPRA Director Shula Rich replies: If you use the data to communicate only with the data subjects, then I don't think it’s necessary to register. My own block is the same. However, opinions differ and for the sake of the lowest fee, we ourselves are registered, as this - from our point of view - is simpler than worrying about it. When you say 'based on turnover', unless you are carrying on other activities apart from holding the service charge in trust for lessees, then you have no 'turnover'. The service charge is not part of the company assets. As you are not trading and hold the data only for the purposes of communicating with your members, then in my opinion there is no need to register. You have no turnover as you rightly say the service charge funds are the lessees' not the company's My own block did register for the lowest fee as some of our directors felt it was the easiest. [Submitted August 2019]

Question 2

Data Dilemma

Accepted Answer

Data Dilemma This is an issue worrying a number of our members Q (Member 1): As an RMC we hold personal records of the lessees and some suppliers of services. Are we obliged to register with the ICO (Information Commissioners Office) and pay an annual data protection fee based on turnover? I understand that The Data Protection (Charges and Information) Regulations 2018 require every business that processes personal information to pay a data protection fee to the ICO. Our RMC owns the freehold, has no employees, collects service charges and manages the block. Looking at the ICO website, it would seem we are not an 'exempt' body. I understand that the ICO's office is sending letters to all UK companies, registered with the Companies House, to register with ICO or face fine up to £4,000 unless done so by February 2020. Q (Member 2): We are a newly formed company following the acquisition of our freehold. We were previously an RTM. Our first full financial year ends this month. We have had a letter from ICO demanding an annual payment – data protection fee. Is this legitimate? We do not trade and hold email addresses for residents for usual communication. It refers to “real estate activities”. FPRA Director Shula Rich replies: If you use the data to communicate only with the data subjects, then I don't think it’s necessary to register. My own block is the same. However, opinions differ and for the sake of the lowest fee, we ourselves are registered, as this - from our point of view - is simpler than worrying about it. When you say 'based on turnover', unless you are carrying on other activities apart from holding the service charge in trust for lessees, then you have no 'turnover'. The service charge is not part of the company assets. As you are not trading and hold the data only for the purposes of communicating with your members, then in my opinion there is no need to register. You have no turnover as you rightly say the service charge funds are the lessees' not the company's My own block did register for the lowest fee as some of our directors felt it was the easiest. [Submitted August 2019]

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