FiDA's final consultation stages are currently underway
The EU Commission is reportedly deliberating simplifications and narrowing the scope of the Financial Data Access Regulation (FiDa Regulation), primarily affecting natural persons and Small-to-Medium Enterprises (SMEs). This move aims to reduce market adaptation costs, as detailed in a working paper acquired by the law firm Simmons & Simmons.
Proposed changes include standardizing and enhancing interoperability for the sharing of financial data across all measures. Industry analysts anticipate a counter-lobby from big tech companies due to these adjustments.
While specifics about the FiDa Regulation are still under wraps, broader developments in financial data access and regulation offer some insights. The Consumer Financial Protection Bureau (CFPB) has been advocating for open banking, often seen as an element of broader efforts to expand consumer-permissioned access to financial data. However, this initiative has sparked a divide between banks and fintechs, with the former expressing concerns about operational and competitive implications, while the latter sees it as a data access opportunity.
Regulatory updates have significantly impacted banks and credit unions, such as changes in privacy regulations and interest rates in 2025. These developments underscore the drive towards financial data transparency and compliance. The Sarbanes-Oxley Act (SOX) compliance continues to evolve, focusing on continuous data verification, a trend possibly influencing data management and access under regulations like FiDa.
Simplifications in the FiDa Regulation could focus on streamlining data access while preserving consumer protection, potentially benefiting both individuals and SMEs. Fintechs are expected to advocate for simplifications that reinforce data access, while banks might push for measures safeguarding operational risks associated with data sharing. The evolving regulatory environment emphasizes efficiency and compliance, potentially leading to more streamlined frameworks for financial data access.
Industry analysts might debate the potential implications of simplifications in the FiDa Regulation for various businesses, with fintechs advocating for improvements that bolster data access and banks pushing for measures that address operational risks associated with data sharing. The financial sector may witness a shift towards more streamlined and efficient data access frameworks as regulatory bodies continue to focus on compliance and consumer protection.
