As part of the ongoing CBDF research project on data localization, this post examines a report issued in December, 2020 by the International Regulatory Strategy Group (IRSG) entitled, “How the Trend Towards Data Localization is Impacting the Financial Services Sector.” This report provides the most comprehensive analysis we have seen about the nature of data flows in the financial services sector. After reviewing global laws and regulations which limit or prevent cross-border data flows impacting the financial services sector, the IRSG report concludes that data localization poses an ineffective tool to support legitimate goals of data security, data privacy, regulatory oversight, support for local markets, and choice for customers.