UK Finance is proposing that the oversight of Open Banking functions should be moved to a new service company upon completion of the implementation roadmap in early 2021.
The Competition and Markets Authority (CMA) final OB implementation roadmap is due to end in early 2021, with the banking and finance industry then required to keep the OB function running.
Since 2016, the Open Banking Implementation Entity (OBIE), overseen by the Implementation Trustee, has played a key role in developing the standards, providing operational and technical services, and generally supporting the open banking community.
The Trustee has said that after the roadmap is successfully delivered, it will bring the Open Banking implementation phase to a close.
"The OBIE cannot be simply wound up," argues UK Finance. "Functions that the wider ecosystem depend on will need to continue: such as maintenance of Open API Standards and the provision of a directory of whitelisted Open Banking participants."
In its stead, the trade body is proposing the creation of a new service company, with firms paying "fair and equitably" for their use of central services. As part of this, a separate monitoring function would be established to review ongoing compliance with the CMA’s Order.
The report, drawn up by Accenture, recommends that the service company Board should consist of a mix of independent and industry experts with customer experience. It also suggests that the monitoring of the original CMA Order on the CMA9 remains separate from the service company, enabling the adapation to future mandates subject to the promotion of competition.
Eric Leenders, UK Finance managing director, personal finance, says: “It is vital that the Open Banking service community works together to ensure that the transition from the current roadmap to a more permanent plan is smooth, enabling the UK to maintain its world leading position in Open Banking as it develops.”
The Financial Conduct Authority is due to publish results from a consultation initiated last year on proposals to extend open banking rules to a wider range of products, under a new model billed as 'open finance'.
The FCA believes that by making it easier for consumers and businesses to compare price and product features and switch product or provider, open finance could be beneficial to a wider range of services in the general insurance, cash savings and mortgage markets.