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and payment service users. The legal framework applicable to EMIs and PIs is already reasonably
consistent. However, the licensing requirements and some other key concepts governing the e-
money business, such as issuance of e-money, e-money distribution and redeemability, are quite
distinct as compared to the services provided by payment institutions. Supervisory authorities have
experienced practical difficulties in clearly delineating the two regimes and in distinguishing e-money
products/services from payment services offered by payment institutions. Therefore, a merger of the
two regimes is proposed, bringing them together in one single piece of legislation and harmonising
them to the extent possible. This will ensure a higher degree of harmonisation, simplification and
consistent application of the legal requirements for PIs and former EMIs.
What is being done to enhance enforcement of the rules?
Most of the payment rules applicable to PSPs will be contained in a directly applicable regulation.
Multiple clarifications are introduced in the legislation on points which were previously unclear or
ambiguous. They include the definition of “funds” “payment account” and “payment instrument” and
detailed rules on how competent authorities must enforce the rules, including a list of breaches for
which specific sanctions must be in place. Specific enforcement provisions for open banking rules
are provided for, given the importance of national supervision for the smooth functioning of open
banking. The European Banking Authority will be granted new intervention powers, providing extra
protection for consumers.
Framework for Financial Data Access
Why is the framework for financial data access needed?
Some data users are already accessing some types of customer data covered through technical
interfaces that data holders have put in place for their customers. However, this way of
accessing customers' data is neither regulated nor supervised, creating risks for customers.
Customers currently do not have control over their data to access data-driven services beyond
payments. In the absence of rules on who can access data and what they can do with it,
customers are not sufficiently confident in permitting data sharing because of potential risks.
Without tools to manage data sharing permissions, customers often feel they do not have
sufficient control. They are therefore often reluctant to share their data.
Even where customers want to share data, the rules governing such sharing are either absent
or unclear.
Data sharing can be costly as both the data itself and the technical infrastructure upon which it
would rely are not standardised and hence differ significantly.
This initiative aims to address these problems in order to promote better access to consumers' and
firms' financial data and hence make it possible for consumers and firms to realise the gains
stemming from better financial products and services. Combining data from different data holders
can enable innovative services for customers who are willing to grant such access.
What is the proposal about?
The proposal for a Regulation establishes a framework for responsible access to individual and
business customer data across a wide range of financial services (also referred to as “open finance”).
This builds on the already existing “open banking” provisions introduced by the Payment Services
Directive (PSD2) that regulate access to customer data held by account-servicing payment service
providers. The proposal takes a customer-centric approach. It aims to ensure that all consumers and
firms have effective tools to control the use of their financial data. The proposal therefore provides
additional tools to ensure personal data protection in line with the General Data Protection Regulation
(GDPR) and applying the general principles of business-to-business data sharing in line with the
Data Act proposal.
What type of data is in the scope of proposal?
The proposal covers customer data that financial institutions typically collect, store and process aspart of their normal interaction with customers who can be either natural persons or business
customers. This includes data transmitted by the customers themselves (transmitted data) and
transaction data arising from customers' interactions with their financial service providers
(transaction data). The data covered by this proposal involves both personal data that relates to
identified or identifiable individuals and non-personal data that relates to business entities or
financial product (contract) features. In terms of specific types of customer data, the initiative covers
loans, savings, investments, occupational and personal pensions, and non-life insurance. Input data
collected for the purposes of carrying out an assessment of suitability and appropriateness as defined
in Article 25(2) and Article 25(3) of Directive 2014/65/EU and input data collected for the purposes
of creditworthiness assessment of firms are also covered.
The proposal does not cover some customer data where an overall cost benefits analysis found that
risks of financial exclusion may outweigh potential benefits. This concerns in particular:
creditworthiness assessments of natural persons; and life, sickness and health insurance.
How will the proposal enable effective access to customer data for customers and for firms
acting as data users?
The proposal gives customers a right to access the data which financial institutions hold about them
(“data holders”) through electronic means without additional cost. It also gives customers a right to
give access to these data to firms from whom they would like to obtain innovative services (“data
users”).
Today, customers of financial service providers can only ensure that third-party providers obtain
access to their payment accounts data under PSD2. Although GDPR also gives consumers the right to
share their personal data held by any financial service provider directly with third-party providers,
this does not cover non-personal data related to business customers and is only applicable ‘where
technically feasible'. However, direct electronic access is necessary for data users to provide
customers with digital financial services, if customers want their data to be used for that purpose.
The proposal therefore introduces a general obligation for data holders to make customer data
available to data users at customer request.
Enabling customer data aggregation and sharing at scale in the financial sector across the EU would
require that both customer data and their sharing interfaces are standardised. This proposal will
promote standardisation of customer data and access interfaces. Furthermore, it aims to ensure that
data holders implement the developed standards and have sufficient economic incentives to provide
high quality interfaces, by allocating the costs involved in implementing those standards and
interfaces between data holders and data users. Moreover, as data reuse involves risks, such as data
misuse, financial crime or fraud, it must be ensured that the liability in case of data misuse, financial
crime or fraud is clear and predictable and liability risks do not act as a disincentive for data holders
to make data available. This is why financial data sharing schemes will have to provide for a clear
liability regime and corresponding dispute resolution mechanisms.
How will the proposal enhance customer trust in data sharing?
Customers must be able to decide who can use their financial data and how: they may either want to
limit third-party access to their data for personal reasons, or they may wish to grant firms access to
their data for the purposes of obtaining financial and information services. This proposal ensures a
secure data-sharing framework that empowers customers by giving them meaningful and effective
control over their data, providing additional safeguards in line with data protection rules and rules on
digital operational resilience, as well as ensuring that the use of this data by the industry is
beneficial to them.
First, life, sickness and health insurance data will be excluded from the scope of this proposal to
guard against any unintended consequences and risks with respect to the processing of such
sensitive data, e.g. risks of financial exclusion. Creditworthiness data of natural persons will also be
excluded. Furthermore, EBA and EIOPA will be empowered to issue guidelines on the use of
customer data (that is in the scope of this proposal) originating from other sources for the purposes
of creditworthiness evaluation of natural persons as well as risk assessment and pricing of life,