On September 24, the CFPB
received its first
application for open banking standard setter recognition under Section 1033 of the Dodd-Frank Act.
As previously covered by InfoBytes, the CFPB initiated its public comment period in June for a final rule outlining the qualifications to become a recognized industry standard-setting body to comply with the CFPB’s upcoming Personal Financial Data Rights Rule. A data exchange group for financial data became the first company to submit an application, aiming to ensure fair, open and inclusive financial technical standards.
The company claimed its practices aligned with the CFPB’s requisite attributes. Its program interface specifications are freely available to any individual or organization that passes a know-your-client check, ensuring openness. The data exchange group stated its decision-making power was distributed across diverse groups, including data providers, third parties, and non-commercial entities. The data exchange group’s board had equal representation from data providers and third parties. The data exchange group maintained publicly available policies, provided adequate notice of meetings, and allowed sufficient time for review and comments to practice due process and appeals. The data exchange group followed a structured Request for Comment (RFC) process, where any member can submit an RFC, and all comments are addressed before final approval. The consensus attribute was upheld through a two-thirds majority vote requirement for all significant decisions, ensuring broad support while allowing for diverse opinions. Finally, the company’s transparency practices include publicly available policies and dedicated councils for smaller organizations, ensuring all members can participate actively and have visibility into decision-making processes.
Comments on the company’s application can be found here.
