norm. data protection bulletin: 19th July 2023

Draft EU Financial Data Space Regulation published

The EC has published a proposal for a Regulation for a framework for financial data access intended to set out processes for management of customer data sharing in the financial sector.

This is the second of the common European ‘data spaces’ to reach this stage as part of the EU’s wider strategy to facilitate the sharing of business data.  The intention is that the financial data space will:

• enable customers to securely share their data with data users (e.g., financial institutions) to give them access to a wider range of financial products and services, particularly data driven ones and at cheaper prices; and
• require customer data holders to make this data available to data users subject to customer permission; and
• give customers control over who accesses their data for what purpose; and
• standardise customer data and technical interfaces for data sharing; and
• implement clear liability for data breaches and dispute resolution relating to financial data sharing; and
• incentivise data holders to establish high quality interfaces for data users through reasonable compensation from data users in line with the principles under the Data Act. 

This has no application in the UK.