Data Sharing In The Financial Sector: An Introduction To FIDA

Discussions for the proposal for a regulation on a framework for financial data access (FIDA) are well underway between EU authorities and relevant stakeholders in Member States. Recently, the first feedback round closed, and the EU authorities are currently processing the feedback. In this article we outline the main characteristics of the proposal by the European Commission made on 28 June 2023. As this is a proposal, the content of FIDA is still subject to change. FIDA aims to regulate the practice of customers instructing financial institutions to provide their data directly to other financial institutions and the newly introduced category of 'Financial Information Service Providers' (FISP). The proposal builds on the Open Banking framework set up under the Payment Services Directive 2 (PSD2), which enabled banks to share payments account data if customers gave permission to do so. The FIDA proposal concerns other financial data such as insurances,