Enhanced Data Sharing Among EU Financial Services Authorities

On March 31, 2026, significant advancements in data sharing within EU financial services were marked by the enactment of the new Better Data Sharing Regulation. This initiative aims to bolster the sharing and re-utilization of supervisory data, simultaneously streamlining reporting processes for industry stakeholders.

The regulation obligates the European Supervisory Authorities (ESAs), along with the European Systemic Risk Board (ESRB), the Single Resolution Board (SRB), the Anti-Money Laundering Authority (AMLA), and the European Central Bank (ECB), to effectively share data with both national and European authorities entitled to access similar data under EU legislation. By mandating this collaborative sharing approach, the regulation seeks to minimize duplicate reporting requirements that have burdened financial institutions.

Under this framework, authorities at the EU level must not only share information they have already collected but are also encouraged to request data from peers rather than re-collecting it from reporting entities. This approach is designed to ensure that supervisory data, gathered in accordance with EU law, is reported once and subsequently made available for reuse by various authorities, including data that has been adequately processed and analyzed.

It is noteworthy that, although this regulation promotes data sharing, not all national authorities are included within the obligatory sharing requirements. As a result, their involvement in data sharing remains largely voluntary, except for instances already dictated by sector-specific legislation.

Additionally, the regulation allows national and EU authorities to share supervisory data with financial institutions, academic researchers, and other interested parties for innovative research purposes, provided that the data is anonymized and adequately protected to uphold confidentiality.

A crucial aspect of the regulation is the stipulation requiring ESAs to set up a permanent single contact point for reporting entities. This contact point is intended to address any issues related to duplicative, redundant, or outdated reporting and disclosure requirements. Furthermore, it emphasizes the need for regular reviews of reporting mandates to enhance their effectiveness and eliminate unnecessary practices.

Looking towards the future, the regulation envisions a comprehensive cross-sectoral integrated reporting system. This system aims to harmonize data standards and facilitate data sharing, which could lead to significant improvements in the efficiency of data collection for supervisory purposes. The successful implementation of this system will be contingent on thorough feasibility studies and cost-benefit analyses.

This initiative reflects the European Commission’s dedication to effective regulation and the reduction of administrative burdens. It is part of a broader agenda aimed at simplifying processes and enhancing the application of the Commission’s strategy regarding supervisory data within EU financial services. The findings of this strategy have highlighted the necessity for more streamlined data sharing and utilization among various authorities.

Initial strides toward implementing this strategy have already been made through notable enhancements in sectoral regulations. For example, improvements have been introduced in the sharing of information related to derivatives transactions (EMIR 3.0), and stronger data sharing frameworks have been established between the European Securities and Markets Authority (ESMA) and pertinent EU and national authorities concerning investment funds such as AIFMD/UCITS. Moreover, supervisory data is now being repurposed for disclosures pertaining to smaller, non-complex banking entities as part of the 2023 banking package. Further advancements are underway, targeting integrated reporting solutions across funds, transactions, and the insurance sector.

In collaboration with this initiative, the ECB is also committed to enhancing data sharing capabilities. A recent revision of the Council Regulation governing the ECB’s collection of statistical data, effective from March 12, has facilitated access to confidential statistical data held by the European System of Central Banks. This includes critical datasets such as AnaCredit and the Central Securities Database.

These legislative developments do not merely enhance operational frameworks for data sharing; they also catalyze the creation of the necessary technical infrastructure. The efforts of the ESAs and other authorities are geared towards bolstering their roles as central hubs for supervisory and statistical data.

Together, these initiatives underline the Commission’s ongoing commitment to simplifying reporting mechanisms and diminishing the burdens placed on financial services. By progressing towards a ‘report once’ strategy, they aim to maximize data utilization, improve financial system oversight, and promote regulatory uniformity across the sector.

To achieve a modern and growth-conducive reporting system within EU financial services, the continued cooperation of various stakeholders, including EU co-legislators and relevant authorities, will be crucial. The Commission’s endeavor cannot succeed in isolation; collaborative engagement across the board is essential.