CNS AR24 Digital - Book - Page 34
There has also been an increase in data and privacy regulations globally. In addition to the EU9s General Data
Protection Regulation (GDPR), U.S. state data breach and privacy legislation, including the California Consumer Privacy Act
and similar laws being adopted in various states, and Japan9s Personal Information Protection Law have come into effect
requiring us to comply with stringent requirements, and we expect that there will be further regulation and legislation that
will come into effect in the future that will require us to comprehensively review our systems and processes and may result in
additional costs.
The U.K.9s exit from the EU in 2020 (referred to as Brexit) may continue to disrupt our business operations and impact
our reported financial results as well as the liquidity and value of our investments and fund distribution. There remains
uncertainty around the post-Brexit regulatory environment as the U.K. continues to establish independent regulations for the
U.K. CSUK9s ability to market and provide its services or serve as a distributor of financial products within the EU could be
restricted temporarily or in the long term as a result of Brexit and a divergence from the EU regulatory regime. Our
contingency plans for Brexit require the cooperation of counterparties or a regulator of financial services to make timely
arrangements. While we believe it is in the best interests of counterparties and regulators to cooperate and recognize firms,
services and products based in the respective jurisdictions, we cannot guarantee that counterparties or regulators will
cooperate or the timeliness of their cooperation. Our operating expenses have increased as we implement plans to continue to
market and provide our services and distribute our products in the short and/or long term.
In addition, regulations restricting the use of commission credits to pay for research have increased, and may continue
to increase, our operating expenses. See
