The European Commission will abandon plans to introduce rules requiring financial institutions to share information with customers and competitors after strong criticism from industry.
According to a document obtained by POLITICO, the Financial Data Access, or FiDA, regulation will be withdrawn within six months as it is “not aligned with Commission’s current objectives” and would introduce a “significant burden and complexity for financial actors” which goes against the EU executive’s goal to simplify rules.
The Commission first proposed the FiDA regulation in June 2023 with the aim of giving individuals more power over their financial data. Under it, financial institutions like banks, money managers and insurers would have had to open up the data vaults that hold their clients’ information.
EU capitals reached an agreement on the Commission’s draft law in December, paving the way for discussions with EU lawmakers to make the proposals a reality. They said the „better data sharing” rules would enable financial players to target consumers with „highly personalised financial products and services.”
But financial lobbyists heavily criticized the proposed rules. In December, six industry associations, representing banks, insurers and asset managers, argued the Commission hadn’t adequately calculated the cost of the proposed rules and that customer and market demand for such data-driven services had not been proven. The group said various key concerns „repeatedly raised” remained „largely unaddressed.”
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
