European Union: Adopted Council general approach on regulation for a framework for financial data access

On 4 December 2024, the Council of the European Union (EU) adopted its general approach to the proposal for a regulation that aims to establish a framework for financial data access while amending existing regulations as part of the review of the Second Payment Services Directive (PSD2). The Council largely supports the European Commission's initial proposal but put forward some changes. The Council clarified the FIDA framework's scope by specifying applicable data sets, products, and sectors, along with a timeline for implementation, while excluding occupational pension data but allowing member states to opt in. The Council’s general approach also permits data-sharing schemes to impose time limits on sharing customer data that is not already in digital form. By and large, the proposal aims to foster data-driven financial services by allowing individuals and businesses to control access to their financial data.