UK DRCF insights paper on smart data frameworks

The Digital Regulation Cooperation Forum (DRCF) has published an insights paper (dated 26 March) on smart data frameworks, providing an international review and comparative analysis to inform the UK's implementation of cross sector smart data schemes under the Data (Use and Access) Act 2025 (DUAA). The paper notes a global shift away from single sector models, such as open banking, towards economy wide frameworks, while highlighting significant divergence in how jurisdictions have implemented them. The DRCF identifies three main approaches: (i) regulator mandated models, which provide legal certainty and consistent standards, but risk high compliance costs and reduced flexibility; (ii) market facilitated models, which support innovation, but often suffer from uneven adoption and unclear liability; and (iii) public infrastructure led approaches, which support interoperability but require significant upfront investment and sustained political commitment.

The paper outlines potential insights and considerations for the UK as it implements the DUAA, including:

• Establishing a central smart data governance body to coordinate scheme development across sectors, set baseline technical and security standards, ensure interoperability and provide a clear strategic direction.
• Introducing smart data schemes using a phased approach, prioritising sectors with clear consumer benefits and policy alignment (for example, energy and Net Zero), and tailoring implementation models depending on their digital maturity, market structure and regulatory landscape context.
• Ensuring schemes adhere to common technical and security standards and where appropriate, strategically align with leading international developments to reduce cross‑border compliance burdens and support global market access.
• Establishing a clear liability framework in secondary legislation and defining robust security and breach protocols. Effective consumer communication will also be critical to securing industry participation and meaningful consumer uptake.
• Embedding safeguards in the design of smart data schemes to mitigate any unintended competition risks.

The paper is said to present findings that are the work of British Academy Research Fellows seconded into the DRCF for 2025/26 and do not represent the views of any of the DRCF member regulators and should not be interpreted as such. They do not represent a statement or indication of the DRCF members' regulatory policies.

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