FDATA North America: Comment Letter Submitted on CFPB’s Section 1033 NPRM

by rebecca

Contact: Laine Williams, (202) 897-4757, [email protected] 

December 27, 2023 Washington, DC – The Financial Data and Technology Association of North America (FDATA), a trade association representing more than 30 financial technology companies and consumer-permissioned data access platforms in Canada and the United States, today filed a comment letter in response to the Consumer Financial Protection Bureau’s (CFPB) Notice of Proposed Rulemaking (NPRM) on personal financial data rights, which will implement Section 1033 of the Dodd-Frank Act.

Steve Boms, Executive Director of FDATA, released the following statement:

“We are pleased to comment on the CFPB’s proposed personal financial data rights rulemaking, which once implemented, will create a legally binding consumer financial data right in the United States. Under this open finance regime, consumers will have the right to access and securely share their financial data electronically with third-party providers of financial tools, products, and services, heralding an era of improved competition and greater consumer control in the U.S. financial services marketplace. Beyond the obvious benefits to consumers, FDATA views this rulemaking as a crucial step forward for U.S. competitiveness in a global economy in which many other countries have already developed and implemented open finance regimes.

Our comments to the CFPB underscore areas for potential improvements in the final rule. We believe these changes will more effectively align the rule with the vision the CFPB presented when announcing its pursuit of this rulemaking, as well as with the open finance regimes implemented by other jurisdictions globally. FDATA looks forward to continued engagement with the CFPB as it works to finalize this pivotal rule in 2024.”

A FDATA member company released the following statement alongside the submission of FDATA’s comment letter.

Brian Costello, Head of Data Aggregation Strategy and Governance at Morningstar Wealth, a member of FDATA, stated:

“Morningstar Wealth actively champions the interests of both investors and the professionals who serve them as the U.S. Open Banking landscape transitions from a commercially managed ecosystem to a regulated financial data right for consumers. The CFPB’s Notice of Proposed Rule Making underscores the Bureau’s strong commitment to addressing this pivotal issue, which holds significant implications for millions of Americans. FDATA’s response letter draws upon the collective expertise of its diverse membership of responsible innovators to provide practical guidance and recommendations essential for the seamless adoption and execution of the final rule. As long-standing members of FDATA, we are pleased to contribute our perspective and experience to this response.”

Click here to read FDATA’s full comment letter.

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