ISR CMA issued three drafts of subsidiary legislation regarding Financial Information Service Law, 2021, covering licensing, qualifications, as well as the scope of activities.
Follows ISR CB Aug. 2021 proposed rules on open banking applicability, see #113254.
Drafts for Consultation
On Jun. 14, 2022, Financial Information Service Law, 2021 entered into force, in which regulation was established to provide financial information service from other sources.
As part of this law, an obligation was imposed on financial entities that hold financial information about a customer, to allow access to the various details the firms hold.
Section 79 of the Financial Information Service Law determines the date from which each information source is required to make the information available, or a start date.
Section 79(b)(4) of the law states a start date of Nov. 14, 2023 will apply where the source is an institutional body, for those that are not corporations, with a start date of May. 15, 2024, set for information to be released on the accounts of all corporations.
However, following the recent attacks from the Gaza Strip, it has been decided that it would be prudent to delay the introduction of the start dates, so that firms had longer to deal with the start-up issues, as well as the now heightened risks of cyber attacks.
The starting day as stated in section 79(b)(4)(a) will now change for entities that are not corporations, to May 14, 2024, and for all corporate accounts, to Nov. 15, 2024.
It is also proposed to postpone the start day in the case of license holder for providing deposit and credit services, and this will now be postponed though until Nov. 15, 2024.
Documentation
Along with the announcement, ISR CMA issued legislation postponing the start dates, as well as on the scope of activity for those providing credit, that are credit brokers.
In addition, the relevant regulatory impact assessment reports have been provided for the proposed changes, along with a new covering letter for the consultation process.
Effectiveness
Stakeholders can provide comments for draft number 1 until Oct. 28, 2023, and for drafts numbered 2 and 3, until Nov. 8, 2023, with all responses to be made by e-mail.
Nov. 13, 2023 Subsidiary Legislation
On Nov. 13, 2023, ISR CMA issued Financial Information Service Law subsidiary law.
Document dated Nov. 13, 2023, received from CMA Nov. 16, summarized on Nov. 21.
Financial Information Service Order (postponement of the start date of law regarding a source of information that is an institutional body or holder of a license to provide deposit and credit services) states postponement for 6 months to Nov. 15, 2024.
