2023 NDAA Includes Financial Data Transparency Act

The 2023 National Defense Authorization Act (NDAA), passed by Congress in December and signed by President Biden, incorporates the Financial Data Transparency Act (FDTA). According to a Data Coalition news release, the FDTA “requires seven of the financial regulatory member-agencies of the U.S. Financial Stability Oversight Council to adopt and apply uniform data standards (i.e. a common data format) for the information collected from regulated entities. As a consequence, the data standards will enable better information processing, software-enabled filing preparation, and data reconciliation.”  The FDTA (Title 58 of the NDAA) requires common, non-proprietary entity identifiers for information reported to covered regulatory agencies. It also requires searchable, machine-readable, open data standards including having documented metadata that clearly define the semantic meaning of the data. Members of the covered agencies will have to issue proposed rules for establishing new data standards within 18 months and issue final rules within 24 months.  Learn more from the Data Coalition’s FDTA Fact Sheet, or read the full FDTA starting on p. 1027 of the final 2023 NDAA (PDF).