The CMA, the UK's competition authority has launched a consultation on the future governance of the UK's Open Banking initiative.

In order to implement Open Banking, the CMA required the UK's 9 largest retail banks to create and pay for an implementation entity – known now as the Open Banking Implementation Entity – and to appoint an implementation Trustee, approved by the CMA, to oversee the process.

The implementation phase of Open Banking is nearing completion and the CMA is now consulting on what arrangements should be put in place for its governance in the next phase of its development.

Banking industry body UK Finance has submitted proposals that involve creating a new body, with a more broadly-based funding and governance model, to succeed OBIE. It is proposed that this body would take over OBIE’s functions, other than compliance monitoring, which will be handled separately. The CMA will consider these proposals as part of its consultation.

Interested stakeholders are being consulted on 3 main areas:

  • Whether the successor organisation proposed by UK Finance proposals will be: independent and accountable; adequately funded; dedicated to serving the customer’s interests; and robust and sustainable;
  • What compliance monitoring arrangements will it be necessary for the CMA to put in place going forward;
  • What transitional arrangements should be adopted and when should the process begin.

The CMA’s consultation will run until 29 March 2021.