FIN.

CMA makes recommendations for the future oversight of Open Banking

The CMA launched a public consultation on the future oversight of Open Banking in March 2021, and has now published the responses to that consultation.

CMA’s recommendations are 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 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.

CMA’s recommendations will be taken into consideration in the design of a future entity to succeed the OBIE. CMA has issued a joint statement together with the Treasury, FCA and PSR outlining their future plans for the oversight of the future entity.

Harshil Patel