How will FIDA be implemented in different EU member states?

FIDA aims for harmonization across the EU, but some variations in implementation between member states are still possible. Here’s a breakdown of the key points:

Harmonization vs. National Tweaks:

  • Regulation vs. Directive: FIDA is a regulation directly applicable in all member states, reducing variation compared to directives requiring national transposition.
  • Common Ground: Key aspects like data access rights, security standards, and supervisory responsibilities will be consistent across the EU.

Potential for Divergence:

  • “Gold Plating”: Member states can add stricter national rules (beyond FIDA’s minimum requirements) in specific areas. This “gold plating” could create some variation.
  • Financial Data Sharing Schemes: FIDA mandates these schemes for specific data access scenarios. How these schemes are designed and implemented in each member state could differ.
  • Supervision: While the European Commission oversees FIDA’s general application, national authorities have specific supervisory powers. Their interpretation and enforcement could vary slightly.

Overall Impact:

  • Despite potential variations, FIDA aims for a level playing field and consistent experience for users across the EU.
  • Financial institutions operating in multiple member states should stay informed about national implementations to ensure compliance.
  • It’s still early to predict the extent of actual divergences. Monitoring member state actions and regulatory guidance will be crucial for understanding the final landscape.

Additional Notes:

  • The 18-month implementation period after FIDA’s entry into force provides time for national adaptations, but also potential for harmonization efforts.
  • Industry groups and regulators are advocating for consistent implementation to maximize FIDA’s benefits.