Scope

The FIDA proposal intends to increase access and reuse of customer data from financial services, e.g. data on insurances, investments, loans, and pensions. The purpose is to improve the conditions for new and innovative data driven services, as well as ensuring a more transparent financial sector for customers. Moreover, the proposal seeks to facilitate for more tailored and customer oriented financial services.

Relevance

FIDA is still at the early stages of the EU legislative process and is subject to change. However, financial service providers subject to the proposal should keep a keen eye on developments in the EU, as compliance with FIDA is likely to require significant resources.  

Key obligation

Financial service providers must grant access to customer data to other financial service providers and entities deemed as Financial Information Services Providers (FISPs), which is a newly introduced category of entities subject to the proposal. In short, FISPs collect customer data, with the customers consent, in order to reuse the data and provide financial information services. Operating as a FISP will require a license and FISPs will be subject to audit from national competent authorities.

Holders and users of financial data need to join a “Financial Data Sharing Scheme”, which are frameworks intended to govern the sharing of data in compliance with FIDA and other applicable EU legislation, e.g. the GDPR.