The Competition and Markets Authority has published a set of recommendations for the future oversight and governance of Open Banking.

The regulator said its proposals will form part of the design of a future entity which will succeed the current Open Banking Implementation Entity (OBIE).

The CMA’s recommendations are as follows:

-have effective regulatory oversight, with a new Joint Regulatory Oversight Committee to agree and implement the next steps led jointly by the FCA and PSR;
-have independent and accountable leadership, with a majority of independent directors on its Board;
-have a clear purpose articulated by the Board;
-be adequately resourced to carry out its functions through a more broadly-based and sustainable funding model;
-effectively serve the interests of consumers and small and medium sized businesses, including consideration for how these groups will be represented in the governance of the entity;
-be sustainable and adaptable to the future needs of the sector; and have a system to effectively support the monitoring and enforcement of the Retail Banking Market Investigation Order 2017.

The recommendations were backed by HM Treasury, the FCA, and the PSR in a joint statement with the CMA.

“We welcome the announcements by the government and regulators, and the endorsement it gives for the future of Open Banking to our thriving ecosystem,” said the OBIE’s trustee and chair, Charlotte Crosswell. “There has been significant collaboration in developing the infrastructure, standards and ecosystem that we have in place today.

"We now need to drive forward competition and adoption and realise the benefits of innovation for consumers and businesses across the UK.

“Today’s announcement underlines government and regulators’ commitment to the future success of Open Banking, and the foundations for Open Finance and beyond. We will look forward to working with the new Joint Regulatory Oversight Committee over the course of this year.”

The OBIE has already made organisational, governance, and operational changes to facilitate the new arrangements.

OBIE chief executive, Henk Van Hulle, said that the organisation will consult with stakeholders and develop a detailed plan for the transition.

“Open Banking has been a major success in the UK, bringing innovative new services to retail banking and benefiting consumers, businesses and the UK economy,” said Andrea Coscelli, chief executive, CMA. “The CMA has carefully considered the appropriate future arrangements to boost Open Banking so that its significant benefits can be realised even more widely.

“We have today outlined the core principles that will ensure the new entity successfully picks up the reins.”

The joint statement published today outlines that the Joint Regulatory Oversight Committee will draw up proposals for the design of the future entity by the end of the year.

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