The European Commission issued the Financial Data Access Act (FIDA) proposal in June this year. FIDA will create a legislative framework that aims to "bring payments and the wider financial sector into the digital age" by facilitating the sharing of and access to customer financial data (whether of businesses or consumers).
Organisations across the financial services industry will be impacted, including, "financial information service providers". Noncompliance with FIDA can give rise to fines up to 2% of annual worldwide turnover and a ban of up to 10 years for responsible individuals to exercise managerial functions at a financial information service provider.
FIDA is part of the broader EU digital finance and data strategy pursued by the Commission and is consistent with the EU's overarching strategy to make "Europe fit for the digital age", on the basis of which a number of other laws have been developed including the proposed EU Artificial Intelligence Act (AI Act), the EU Data Act and new cybersecurity laws such as the Digital Operational Resilience Act (DORA).
