On 25 March 2022, the Competition and Markets Authority (CMA) published its recommendations for the future oversight and governance of Open Banking. The CMA’s recommendations will be taken into consideration in the design of a future entity to succeed the Open Banking Implementation Entity (OBIE). The future entity would build on the significant progress made to date by the OBIE to encourage innovation and support competition in retail banking. Among other things the CMA recommends that the future entity should have effective regulatory oversight, with a new joint regulatory oversight committee to agree and implement the next steps led jointly by the Financial Conduct Authority (FCA) and Payment Systems Regulator (PSR).

The CMA, HM Treasury, the FCA and PSR have also published a joint statement outlining their plans for oversight of the future entity, building on the CMA’s recommendations, including the establishment of a joint regulatory oversight committee.

HM Treasury, the FCA, the PSR and the CMA agree that the future entity should:

  • Have effective regulatory oversight, with a new committee, led jointly by the FCA and PSR, to consider the entity’s vision, governance and priorities.
  • Be independent, well-governed and underpinned by a set of values and cultures that include an emphasis on integrity and promoting ethical behaviours.
  • Play a central role in delivering new proposals beyond those required by existing regulations.
  • Be adequately resourced to carry out its functions through a more broadly-based and sustainable funding model.
  • Effectively serve the interests of consumers and businesses, including consideration for how these groups will be represented on the board.