FDTA proposed rules public comment period is open

The State Auditor’s Office has been closely monitoring actions concerning the Financial Data Transparency Act (FDTA), which was passed into law at the end of 2022. The act seeks to modernize the collection and dissemination of financial data by federal financial regulators by requiring information submitted to the agencies to be in a machine-readable format.    

We were notified that the phase one FDTA proposed rules are now available on the U.S. Securities and Exchange Commission (SEC) website for public comment. SEC Commissioner Peirce released a statement encouraging the public to respond to the questions included in the proposed rules, and provided an additional list of questions for review.  

We highly encourage all local governments and associations to participate in the comment period. Additionally, working with the national-level associations as applicable is highly recommended. The phase one rules comment period closes on October 21, 2024, followed by the SEC’s plan to vote on the proposed rules by December 31, 2024.  

Note: Once the SEC approves phase one rules, it will move to the second round of rulemaking. This round will determine what financial reporting data will be required to follow standardized reporting taxonomies.