Written by Dave Nyczepir
Senators on Wednesday introduced a bill to improve the collection and publication of data by eight federal financial regulatory agencies.
the Financial Data Transparency Act (FDTA) would require agencies to create common standards regarding the organization, readability, and availability of the data they collect from the institutions they regulate.
Investors and consumers currently do not have the means to electronically search reporting institutions’ reports to financial regulators, but the FDTA would require that data be made open, where appropriate, in a machine-readable format within four years after their adoption.
“Making the financial data used by federal regulators more accessible and understandable to the American public is an important step in improving government transparency and accountability,” Sen. Mike Crapo, R-Idaho, said in the statement. ‘announcement.
Crapo co-sponsored the bill with Sen. Mark Warner, D-Va.
Should the bill become law, the Treasury Department, Securities and Exchange Commission, Federal Deposit Insurance Corp., Office of the Comptroller of the Currency, Consumer Financial Protection Bureau, Federal Reserve Board, National Credit Union Administration and the Federal Housing Finance Agency would have two years to finalize data standards through joint regulation. They would have another two years to implement these standards in their data reports.
The standards would build on governmental, industry and international best practices in handling and handling data and include common, non-proprietary legal identifiers for financial products, instruments and transactions. The identifiers would be available under an open license and free of charge.
An open licensing format would promote competition to create data collection and analysis tools that reduce costs for agencies.
Agencies would also be required to make financial data interoperable for consistency, ease of use and simplified compliance.
“The bipartisan Financial Data Transparency Act will modernize our national financial reporting infrastructure to harness data in intelligent, timely and critical ways,” Nick Hart, president of the Data Foundation, said in a statement. “These necessary data reforms are a huge boon to everyone, whether they’re on Wall Street or Main Street, because we all need reliable, quality information at our fingertips to make good decisions.”