Today, in a joint announcement between the Financial Conduct Authority, the Payments Service Regulator, The Treasury and the CMA (Competition and Markets Authority), an entirely new Joint Regulatory Oversight Committee (JROC) was introduced.
The JROC will oversee the governance of open banking going forward, taking over from the CMA, and will be responsible for the long-term regulatory framework of open banking and open finance.
Essentially the JROC will design the ‘new entity’ which the Open Banking Implementation Entity (OBIE) will transition into, in order to lead the UK’s development of open banking and open finance.
According to Andrea Coscelli, CEO of the CMA, “The CMA has carefully considered the appropriate future arrangements to boost Open Banking so that its significant benefits can be realised even more widely, we have today outlined the core principles that will ensure the new entity successfully picks up the reins.”
The JROC will draw up its proposals for the future entity by the end of 2022, and will oversee the new entity once it’s set up. Unfortunately, according to Maria Palmieri, head of public policy at Yapily, “many questions still remain around the future of Open Banking in the UK. With the current mesh of regulators, it is almost impossible for fintechs, banks and open banking providers to plan for the future.”
