Insurance Europe, alongside other major financial industry associations, has called on EU co-legislators to carefully assess the implications of the proposed Financial Data Access (FiDA) Regulation before finalising it.
The appeal comes as the European Parliament adopts its position and the Council reaches its General Approach to the regulation.
The coalition, which includes the Association for Financial Markets in Europe (AFME), the European Association of Co-operative Banks (EACB), the European Banking Federation (EBF), the European Fund and Asset Management Association (EFAMA), and the European Savings and Retail Banking Group (ESBG), emphasises the importance of safeguarding the competitiveness of Europe’s financial sector while delivering benefits to European citizens.
Insurance Europe noted that the data economy, particularly when it enables cross-sector data exchange, offers opportunities for innovation and customer benefits. However, achieving these outcomes requires a focused and evidence-based approach to ensure that the regulation delivers tangible benefits without disrupting existing financial systems.
The group outlined concerns that the proposed FiDA framework lacks adequate analysis of its broader impact on the financial services value chain.
It stressed the need for further scrutiny to address potential risks to consumer protection, data security, and the competitiveness of European financial institutions.
Insurance Europe and its partners highlighted several areas for improvement in the FiDA framework. One recommendation calls for balancing customer value, market demand, and implementation costs before the regulation is enacted.
The coalition pointed out that the current impact assessment for FiDA does not sufficiently evaluate these factors or provide evidence of customer and market demand for data sharing. Without this balance, the regulation risks diverting resources away from innovation and undermining the competitiveness of EU/EEA financial institutions.
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The group also raised concerns about the introduction of financial information service providers (FISPs), entities that would manage large volumes of sensitive customer data under FiDA. It argued that FISPs should be subject to robust regulation and supervision comparable to that of regulated financial institutions to ensure data security and privacy.
Insurance Europe stressed that the current framework does not sufficiently address these issues, posing risks to fundamental data protection rights in Europe.
Despite some positive changes in the European Parliament and Council positions, Insurance Europe noted that the proposals remain broad in scope, particularly regarding data categories.
The association warned that without addressing competitiveness and data protection concerns, FiDA could fall short of its objectives while creating additional challenges for financial institutions and their customers.
The financial sector reiterated its readiness to collaborate with policymakers to create a practical and well-designed FiDA framework.
Insurance Europe underscored the need for legal clarity to support the development of Open Finance in the EU/EEA, ensuring the framework aligns with consumer and market needs while safeguarding the industry’s ability to innovate and compete globally.
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