The leaders of the House Financial Services Committee applauded the passage of legislation that would require financial regulators to adopt data collection standards and replace paper-based forms with electronic forms.
The Financial Transparency Act, which was included as an amendment to the FY 2023 National Defense Authorization Act (H.R. 7900), passed by a vote of 329-101 in the U.S. House of Representatives on July 14.
Sponsored by U.S. Rep. Carolyn Maloney (D-NY), senior member of the committee, and Rep. Patrick McHenry (R-NC), ranking member of the committee, the legislation would make all data available in an open-source format that is electronically searchable, downloadable in bulk and without license restrictions.
“I am very proud that we were able to include this commonsense and bipartisan reform in the FY 23 NDAA,” Maloney said. “The Financial Transparency Act will finally bring financial reporting and transparency into the 21st Century – making information more easily accessible to both regulators and the public. This provision is a true win-win because it helps investors, businesses, and the government. I’ve long been an advocate for structured data in financial reporting, and I’m proud to have secured its inclusion in this legislation with Ranking Member McHenry.”
It would also ensure that confidential information remains protected.
“Technology is a pillar of our financial system. It just makes sense for financial regulators to use that same technology to make public data more easily accessible,” McHenry said. “Streamlining data sets benefits everyone from financial institutions to startups by increasing transparency and decreasing regulatory burdens. I want to thank Congresswoman Maloney for her continued partnership and work on this important legislation.”