osted on 10/26/2023

FDX Acknowledges CFPB’s NPRM

RESTON, Va., October 25, 2023 – The Financial Data Exchange (FDX) is pleased with the progress the Consumer Financial Protection Bureau (CFPB) is making to implement Dodd-Frank Act Section 1033 with its notice of proposed rulemaking (NPRM) last week. This is an important milestone for Open Banking/Open Finance and will help resolve some of the ambiguities in the financial services ecosystem.  FDX is reviewing the NPRM and will provide appropriate feedback as the CFPB has requested.

FDX is encouraged by the CFPB’s acknowledgment that working with fair, open, and inclusive standards setting organizations is “critical” in “ensuring safe, secure, reliable, and competitive data access.” FDX supports the CFPB’s aims to recognize industry-accepted standards to help the financial industry demonstrate compliance with the use of secure standardized formats to share data.

The NPRM indicates that the CFPB will look to qualified standards setting organizations that, among other things, have the following attributes:

• openness (sources and processes used are open to all interested parties, including consumer and other public interest groups, authorized third parties, data providers, and data aggregators);
• balance (decision-making power is balanced across all interested parties, including consumer and other public interest groups, with no single interest dominating decision-making);
• due process (publicly available policies and procedures, adequate notice of meetings and standards development, and a fair process for resolving conflicts);
• an impartial appeals process;
• consensus (general agreement, not unanimity, reached through fair and open processes);
• transparency (procedures are transparent to participants and publicly available); and
• the body has been recognized by the CFPB within the last three years as an issuer of qualified industry standards
  

FDX endeavors to mirror in its practices and goals these attributes. FDX intends to seek recognition as a qualified standards setting organization once the rules and procedures are finalized. FDX will seek such recognition in accordance with its consensus and member-led processes.