Financial Data Transparency Act Joint Standard Proposal
Posted by Gracie Nelson on August 23, 2024

The Financial Data Transparency Act (FDTA) of 2022 introduced a significant shift in how financial data is handled across the industry. This act mandates that financial regulatory agencies work together to set joint data standards for the information financial institutions report. The goal is to make financial data more accessible and useful for the public while helping regulators be more effective in their oversight.
Currently, a collaborative effort among various agencies, including the Office of the Comptroller of the Currency, the Federal Reserve, the FDIC, NCUA, CFPB, FHFA, CFTC, SEC, and the Department of the Treasury, is underway to establish these uniform data standards. This joint initiative is inviting public input on how to set consistent data reporting standards across these different regulatory bodies.
Understanding Personal Financial Data Rights (1033) and Joint Standards Proposal
It’s important to note that the Joint Standards proposal is distinct from the rulemaking on Personal Financial Data Rights, known as Rule 1033. While both are part of broader efforts to enhance data transparency and accessibility, they serve different purposes. Rule 1033 focuses on giving consumers the right to control their financial data, empowering them to decide how their data is shared and used. The Joint Standards proposal requires financial institutions to report data in a standardized format, which will create consistency across the industry. These two rules work in conjunction with one another, with the standardized data format under the Joint Standard proposal benefiting credit unions by simplifying data migration and improving compatibility across systems.
Looking Forward
- Unified Data Framework: The proposed standards aim to standardize how financial data is collected, processed, and shared. This effort is intended to enhance the consistency and efficiency of data reporting, cut down on compliance burdens, and improve transparency throughout the financial sector.
- Call for Feedback: Stakeholders, including credit unions, are encouraged to provide feedback on the proposed standards. This input will help shape how these standards impact operations and the broader financial ecosystem.
- Future Implementation: Once these standards are finalized, they will be implemented through additional rulemakings or other agency actions. This approach is designed to help financial institutions better meet regulatory requirements while encouraging innovation and competition in the industry.
To view the Financial Data Transparency Act Joint Data Standards Proposal, click here.
Why It Matters for Credit Unions
For credit unions, adopting standardized data practices can simplify reporting processes and reduce the complexities of regulatory compliance. By aligning data standards across agencies, financial institutions will experience a more streamlined, cohesive approach to their regulatory obligations, which could potentially lower operational costs and enhance data accuracy.
Overall, this initiative represents a step forward in making financial regulation more effective and accessible, benefiting both financial institutions and the public.
Please direct any questions or concerns you may have to John Trull at [email protected] and Gracie Nelson at [email protected]
Posted in Advocacy on the Move, Regulatory Advocacy.