This article discusses a white paper put out by the Ontario Securities Commission on Monday. Pat Chaukos, the chief of OSC, stated that financial technologies like blockchain can’t grow and innovate without open-access data. For example, having a client’s “core information” available would allow regulators to streamline information gathering, analyzing, and verifying. The paper argues that this would make compliance with regulations easier because there would be a standard system.
However, financial institutions might not be inclined to make these changes because they will be hesitant to make the core client information available to other entities. Chaukos acknowledged that the open-access data approach would increase competition. While that is good news for investors, financial institutions might not be so thrilled to have their industry dramatically change.
http://finance.yahoo.com/news/canadian-regulator-says-open-data-012807908.html
I can understand financial institution hesitation but the long term effects of such a change outweigh costs. At the moment, the ‘core information’ belongs to the institutions which makes them feel entitled to it. Once its open access, the entitlement will dissipate.