The long-awaited rule, if finalized, could have broad impacts on financial institutions and third parties. The CFPB’s guide covers proposed compliance dates and requirements for entities included in the proposed rule.
11/01/2023 1:15 P.M.
2 minute read
Following the recent Consumer Financial Protection Bureau Notice of Proposed Rulemaking on its new Personal Financial Data Rights rule, the bureau has issued a guide on its background, compliance dates and more: “Fast Facts: Personal Financial Data Rights Proposed Rule” (PDF).
The proposed rule seeks to standardize access to data and its terms, fostering a more level playing field for both established and emerging financial institutions, according to the bureau.
The CFPB has opened comments on the proposed rule until Dec. 29, 2023.
The Fast Facts guide provides a high-level overview of the topics in the proposed rule as well as proposed compliance dates and key requirements for regulated entities including data providers, authorized third parties and data aggregators.
Compliance dates for the rule, if finalized, would range from six months after its publication in the Federal Register to four years after the publication date, depending on the size of the covered data providers.
Access the complete guide (PDF) from the CFPB and the Notice of Proposed Rulemaking here for more information and instructions for submitting comments.
ACA’s Take
The CFPB is subject to a rulemaking step that is unique among financial regulators. It is required to convene a panel of small companies that represent their markets before releasing a proposed regulation in order to get their feedback.
As part of that requirement, the bureau released an outline of proposals and alternatives under consideration by the Small Business Advisory Review Panel as well as a summary and discussion guide of those proposals.
As described in the outline, the CFPB is considering proposals, for example, that would help consumers who want to choose a new provider to transfer their account history to a new company.
The bureau is expected to finalize the proposed rule in 2024 and move on to implementation.
According to a client alert from Brownstein Hyatt Farber Schreck LLP, the proposal will have wide impacts on financial institutions and third parties if finalized.
ACA International is considering submitting comments on the proposed rule. Members with input to inform possible comments can contact ACA’s advocacy team at [email protected].
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