On 6 June 2023, the FCA announced that the Joint Regulatory Oversight Committee (JROC) has set out the next steps to help UK open banking grow.
The programme of work, set forth by the JROC, involves setting up dedicated work streams to action the key themes and priorities outlined in the recommendations that were issued in April.
The JROC has tasked Open Banking Limited to lead and coordinate work streams on four of the key themes. In addition, the JROC has launched two new working groups on two themes – variable recurring payments (VRP) and the future open banking entity.
At present, VRP use is limited to when individuals want to move money between their accounts (referred to as ‘sweeping’). The working group will develop a blueprint for the phased roll-out of non-sweeping VRP by the end of September 2023.
The working group will consider the design of the future entity, including its role, structure, and funding. It will also set out proposals around how the future entity can be implemented. The working group will report to the JROC by the end of September 2023 and the JROC will publish its views in an update towards the end of 2023.