OPEN FINANCE: FSCA PUBLISHES DRAFT POSITION PAPER

OPEN FINANCE: FSCA PUBLISHES DRAFT POSITION PAPER

• 12 July 2023
• Financial Sector
• SA Legal Academy

The Financial Sector Conduct Authority has released a draft position paper on open finance – which is defined in an accompanying press release, backdated to 10 July 2023. Apparently, the concept is ‘built on the principle of customers owning the data … they create on the platforms of financial institutions and having the right to share that data with suitable authorised third parties’.

The draft position paper includes recommendations for optimising available opportunities, nevertheless managing and mitigating risk to consumers. This is noting that, in the absence of a ‘tailored regulatory framework’:

• the risks potentially arising from data-sharing and data-use are not yet ‘specifically addressed’, and
• ‘providers are not compelled to operate within agreed governance and operational norms or pursue a customer-centric approach’.

Policy proposals outlined in the draft paper seek to address this. However, is not clear from the statement or the document if it is part of a stakeholder consultation process requiring input within a specific timeframe.

• draft position paper
• media statement

Published by SA Legal Academy Policy Watch

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