FCA, PSR, CMA and HM Treasury have published a joint statement on the future of open banking, announcing the creation of a joint regulatory oversight committee. The committee, co-chaired by the FCA’s Executive Director, Consumers and Competition, Sheldon Mills, and PSR’s Managing Director, Chris Hemsley, held its first meeting on 12 May where the Terms of Reference for the committee were agreed.
The role of the committee is to:
- oversee the planning and preparation for the future open banking entity (future entity);
- oversee the transition to the future framework;
- consider the vision and strategic roadmap for further developing open banking; and
- oversee and, where applicable, monitor the future entity, once set up, until a permanent regulatory framework is in place.
The committee members believe there is potential to build on the progress to date of open banking, to drive further benefits for consumers and businesses, and maintain the UK’s position as a leader in innovation. The committee sees opportunities in unlocking the potential of open banking payments, enabling end-users to share data, managing access, and developing further data-sharing propositions. This includes greater consumer protection and to ensure open banking remains interoperable with any possible future open finance initiatives.
Within the committee, a strategic working group (SWG) has been convened. The SWG is a non-decision-making consultative forum for industry, subject matter experts and other stakeholders, such as consumers and businesses, to share views and input into further developing open banking, the related community, and the future entity. It will operate from August to December 2022 and collate stakeholders’ views on ways to take forward open banking, with a view to help inform the recommendations of the committee. Bryan Zhang has been appointed by the committee as the independent chair of the SWG. The chair of the SWG reports, and is directly accountable, to the co-chairs of the committee.