• Legal basis
The Treaty on the Functioning of the European Union (TFEU) confers on the EU institutions the power to set rules on Member States' approximation of laws that have as their objective the establishment and functioning of the internal market (Article 114 TFEU). This includes the power to enact EU legislation to approximate requirements on the increasingly important use of data for financial institutions, as financial institutions active across borders would otherwise face diverging national requirements, rendering cross-border activity more costly. Creating common rules for data sharing in the financial sector will contribute to the functioning of the internal market. Common rules will ensure a harmonised regulatory framework on financial data governance, in line with the European strategy for data. These results will best be achieved by adopting a Regulation, which is directly applicable in Member States.
• Subsidiarity (for non-exclusive competence)
The data economy
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