At the time of writing, the order of recognition was the first to be issued under the Personal Financial Data Rights regulation, released in October 2024 and demanded financial institutions, credit card issuers, and other financial services providers to reveal an individual’s personal financial information and allocate it a different provider at the consumer’s request with no charge. Additionally, the rule intended to address privacy concerns, with it prioritising privacy protections by requiring third parties to offer consumers an authorisation disclosure. The disclosure included who can access the data, the purpose, and for how long, while also delivering instructions on how consumers can opt out of information retention or usage.
Operating across the US and Canada, FDX is a standard-setting organisation having over 200 members, such as depository and non-depository commercial entities, data providers and recipients, data aggregators, service providers to Open Banking participants, trade and industry organisations, and other non-commercial entities. Its operations centre around developing, optimising, and maintaining a common, interoperable procedure for secure consumer and business access to financial records.
Furthermore, FDX sent an application for recognition to the CFPB back in September 2024, with the bureau then publishing it for public comment later during the same month. The CFPB took into consideration several aspects before approving FDX’s application, including the ban on pay-to-play and other conflicts of interest, mandatory reporting on market adoption, and transparency and availability of standards. As of the current order, FDX has been recognised as an industry standard-setting body for five years, with the CFPB continuing to evaluate other applications for recognition.
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