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Last week, the SEC joined several other financial regulators to propose joint data standards under the Financial Data Transparency Act of 2022. In its announcement of the rulemaking, the SEC notes that eight other financial regulators have proposed or are expected to propose the joint standards: the Board of Governors of the Federal Reserve System, the Commodity Futures Trading Commission, the Consumer Financial Protection Bureau, the Department of the Treasury, the Federal Deposit Insurance Corporation, the Federal Housing Finance Agency, the National Credit Union Administration, and the Office of the Comptroller of the Currency. The announcement goes on to note:

The proposed joint standards would promote interoperability of financial regulatory data across the agencies by establishing common identifiers for entities, geographic locations, dates, and certain products and currencies.

“This proposal will make financial data more accessible, uniform, and useful to the public,” said SEC Chair Gary Gensler. “Consistent data standards will make it easier for financial institutions to file reports across multiple agencies. They also will help regulators be more effective and efficient in carrying out our oversight functions.”

In addition, the proposal would establish a principles-based joint standard with respect to data transmission and schema and taxonomy formats, which would enable financial institutions to submit high-quality, machine-readable data to the agencies.

Comments on this rulemaking are due 60 days following publication of the proposing release in the Federal Register.

– Dave Lynn