Global: Federal Financial Regulators Propose Unified Data Standards

Nine federal financial regulatory agencies have proposed new joint data standards for submissions across the agencies, following the requirements of the Financial Data Transparency Act of 2022. This initiative aims to enhance the interoperability of financial regulatory data.

According to a press release from the Consumer Financial Protection Bureau (CFPB) on August 2, these proposed standards will cover identifiers for legal entities and other common data points. The goal is to streamline and standardize financial data reporting, improving accessibility and consistency across regulatory bodies.

The agencies involved in this proposal include the CFPB, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Federal Housing Finance Agency, the Commodity Futures Trading Commission, the Securities and Exchange Commission (SEC), and the Department of the Treasury.

SEC Chair Gary Gensler highlighted the benefits of these proposed standards, stating, “This proposal will make financial data more accessible, uniform, and useful to the public. Consistent data standards will simplify the reporting process for financial institutions and enhance the efficiency and effectiveness of regulatory oversight.”

The Financial Data Transparency Act, which was included in the National Defense Authorization Act passed in December 2022, aims to modernize data collection by establishing common formatting standards. This will facilitate easier processing and utilization of financial data collected from regulated institutions.

In May, Sen. Mark Warner, House Financial Services Committee Chairman Patrick McHenry, Ranking Member Maxine Waters, and Sen. Mike Crapo urged the heads of the federal financial regulatory agencies to implement the Financial Data Transparency Act. They emphasized that these standards will make federal financial data more accessible, support the use of advanced technologies like artificial intelligence, and promote transparency and market efficiency.