On 8 August 2025, the Financial Conduct Authority (FCA) published Feedback Statement 25/4: Design of the Future Entity for UK open banking (FS25/4).

Background

In March 2022, the FCA together with the Payment Systems Regulator, Competition and Markets Authority and HM Treasury announced the creation of a Joint Regulatory Oversight Committee (JROC) to help support innovation and increased use of open banking services. JROC agreed that a successor to Open Banking Limited should be established to develop open banking standards and guidelines for all participants in the open banking ecosystem. The new body is known as the ‘Future Entity’ as it represents the next phase in the development of open banking in the UK.

On 19 April 2024, the JROC published a report containing its recommendations for the Future Entity. The JROC invited comments on the report by 20 May 2024. The government’s National Payments Vision (NPV) named the FCA as the lead regulator to progress open banking and JROC has been wound down.

There has been significant progress in open banking over the last 12 months, including the Data (Use and Access) Act 2025 (DUAA) receiving royal assent. 

FS25/4

In FS25/4 the FCA responds to the feedback received to JROC’s report and sets out its expectations for the role of the Future Entity, how it will sit within the open banking ecosystem, and the next steps for establishing the Future Entity.

Subject to future legislation, the FCA expects the Future Entity to be the primary standard-setting body for open banking application programming interfaces (APIs) in the UK.

Its responsibilities will include:

  • Setting common standards that will provide a minimum level of service and interoperability across open banking services.
  • Monitoring API performance.
  • Ensuring adherence to relevant standards (including providing information to the FCA).
  • Providing directory and certification services.
  • Working with multilateral agreement owner/operators to develop standards that enable commercial schemes.

Subject to legislation, the Future Entity will not be a public body or have its own enforcement powers.

The FCA no longer plans to set up an interim entity.

Commercial layer

The FCA is conscious that there will be a competitive layer of open banking schemes, operating commercially and that these commercial schemes will develop the rules that govern how firms interact and put things right when they go wrong. The FCA expects such commercial schemes to be industry led and utilise the common API standards developed and overseen by the Future Entity, to ensure interoperability. Commercial scheme operators may innovate beyond these standards to provide premium services. The FCA expects the Future Entity and operators in the commercial schemes to be regulated as interface bodies under the DUAA. 

Next steps

The FCA is holding a series of workshops over the summer and into the autumn. It expects to say more about how the Future Entity will be established by the end of 2025.