The Financial Data Access Regulation, known as FIDA, is among the proposals the European Commission plans to withdraw under its 2027 work programme, published on 4 November 2026. The decision ends a three-year attempt to build an open finance framework and tells banks, insurers and fintech firms to plan for a different route to data sharing.

The work programme is notably lean. It lists 23 new initiatives for 2027, compared with 38 in 2026 and 45 in 2025, and pairs them with a list of pending proposals to be withdrawn or repealed. Within financial services, the withdrawal of the Financial Data Access Regulation sits beside a new banking simplification effort.

What the Financial Data Access Regulation was meant to do

Proposed in 2023, the regulation would have required financial institutions to give customers, and authorised third parties, access to data held beyond payment accounts. That included savings, investments, pensions and insurance information. It was conceived as the sequel to the open banking rules in the Payment Services Directive, extending the same logic to the wider financial sector.

The proposal also envisaged financial data sharing schemes, in which data holders and users would agree on standards and compensation. That compensation question proved contentious, since banks and insurers argued that building interfaces costs money while fintech firms feared prices that would shut them out.

Why the Commission is withdrawing the proposal

The reasoning follows the logic of the 2027 programme, which prioritises fewer, more focused files and wants to clear proposals that have stalled. The published summaries do not describe the internal assessment of the Financial Data Access Regulation, so the precise motives remain unconfirmed. What is visible is the context. Co-legislators have spent years on the file without a final agreement, and the Commission is now steering resources toward measures it expects to land.

Those measures include an omnibus on bank financing, timed for the first quarter of 2027 and aimed at competitiveness and simplification, plus proposals reforming the venture capital framework and a mid-term review of the Savings and Investments Union. Together they shift the emphasis from new data rights toward lighter rules and deeper capital markets.

Open finance after withdrawal

Withdrawal does not make data sharing disappear. Open banking under the payment services framework continues, and firms can still build voluntary arrangements. Without a harmonised regulation, however, three risks emerge. National approaches could diverge, large platforms could set de facto terms, and smaller providers could lose the leverage that a legal access right would have given them.

Consumers are the other group to watch. The promise of one dashboard showing pensions, investments and insurance depended on common standards, and voluntary projects tend to cover the most profitable products first.

What happens next

Withdrawals follow a formal process involving the Parliament and the Council, so the next weeks will show how co-legislators react. Industry will watch whether the Q1 2027 banking omnibus contains any data-related provisions, and whether the Savings and Investments Union review revisits access to financial data.

For compliance teams, the sensible reading is cautious. The Financial Data Access Regulation will not arrive as planned, yet customer demand for data portability will continue. Firms that invested in interfaces can keep them as a commercial advantage, while those waiting for a legal mandate should prepare for a longer, more fragmented route to open finance.