Privacy & Data Protection

Personal financial information is invaluable. Protecting that information is paramount.

The financial industry is committed to ensuring the safety of the clients we serve at every turn. SIFMA members are subject to many federal and state privacy frameworks intended to protect non-public personal financial information. These laws and regulations strictly govern the use, sharing, and security of client information, as well as data breach procedures. This web of privacy and data protection laws and regulations should be enhancing customer protection but often may cause customer confusion and inconsistent treatment of customers based on where they live and what entity held their information. State and federal laws and regulations may conflict and cause financial institutions to comply with those conflicting regimes, causing confusion and inefficiency. Adopting a federal preemptive standard would greatly improve customer protection by minimizing confusion and inequality.

Personal Data Aggregation

Clients have the ability to aggregate personal financial information on third-party platforms to assess their financial position. This data aggregation creates valuable opportunities for clients but also has the potential to put their data at risk if it is misused, mishandled or misappropriated.

SIFMA is coordinating a broad-based industry effort to protect a customer’s financial information, with a focus on investors’ right to securely access their own data. We have created a set of industry-wide Principles for protecting, sharing and aggregating customer financial information. SIFMA has also introduced consumer resources for our members to help consumers better protect their data and discuss this important issue with their clients.

 

Securing financial data sharing in a connected world

SIFMA is a founding member and serves on the Board of the Financial Data Exchange (FDX). FDX was established on the idea that consumers and businesses should have easier, more secure access to their financial data. Through FDX’s Durable Data API (DDA) and technical frameworks, FDX is unifying the leading financial institutions, fintechs and others around a common standard for data sharing across the entire financial industry.

Join FDX today. Tiered membership opportunities are available to any interested parties within the financial data ecosystem. FDX exists as an independent subsidiary under the umbrella of the Financial Services Information Sharing and Analysis Center (FS-ISAC), whose mission is to ensure resilience and continuity of the global financial services infrastructure.

 

Important external resources

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