1. Data Standardization to Empower RegTech
Directs all eight major U.S. financial regulatory agencies to adopt consistent data standards for all of the information they collect from industry under existing securities, commodities, and banking laws. Each agency must adopt electronic fields and formats to replace document-based forms, following the lead of the U.S. Treasury Department where applicable.
Once financial regulatory reporting is expressed as standardized, open data instead of disconnected documents, RegTech applications will be empowered to republish, analyze, and automate.
2. Adopting the Legal Entity Identifier
Directs the Treasury Department to adopt data standards for concepts that reach across multiple regulators, and requires the regulators to follow Treasury’s instructions. Specifically mandates the adoption of the global Legal Entity Identifier (LEI) across all financial regulatory reporting regimes, to allow easy matching of filings from the same entity with multiple regulators.
Once every financial regulatory agency uses the LEI to identify the companies and firms it regulates, these entities will be automatically identifiable across separate reporting regimes – bringing instant transparency for markets and investors.
3. Open Data Publication
For information that existing laws already require to be published, requires agencies to make such information available online as open data — electronically searchable, downloadable in bulk, and without license restrictions.
Once this public information is consistently available as open data, information companies and investors will be able to harvest it to empower better decisions.
4. Fixing Data Reporting at the SEC
Requires the Securities and Exchange Commission (SEC), for the short term, to replace its current duplicative financial statement reporting requirement, in which public companies must submit each statement once as a document and again as data, with a single filing in the inline XBRL format (On March 1, 2017, the commissioners of the SEC unanimously voted to propose rule changes to accomplish this).
Once the SEC stops collecting every financial statement twice, companies and SEC staff will be able to focus on just one filing rather than comparing a document to a data file – reducing costs and improving data quality.