Featured Product

    FCA Publishes Response to Call for Input on Open Finance

    March 26, 2021

    FCA published the feedback statement FS21/7 with respect to the December 2019 Call for Input on maximizing the potential for open finance. The statement covers several key themes and issues for open finance: risks and benefits; feasibility and cost; the need regulatory framework, common standards, and infrastructure; and the FCA draft principles for open finance, including the next steps. The feedback statement will be of interest to consumers, banks, building societies and credit unions, consumer credit firms, electronic money and payment institutions, financial advisers, fintech and innovative businesses, general insurers and insurance intermediaries, investment managers, life insurers and pension providers, and mortgage lenders and intermediaries.

    FCA had received 169 responses to this call for input. Responses show that open finance could potentially offer significant benefits to consumers, including increased competition, improved advice, and improved access to a wider and more innovative range of financial products and services. However, open finance would also create or increase risks and raise new questions of data ethics. Thus, appropriate regulation will be essential to managing those risks and giving consumers the confidence to use open finance services. A degree of consensus exists on the key building blocks needed for open finance to develop in the interests of consumers and these include a legislative and regulatory framework, common standards, and an implementation entity. The responses provided a significant evidence base on the key questions on open finance to help inform the future work at FCA and the government. In the 2019-20 business plan, FCA had committed to leading the debate on open finance and it, therefore, plans to support the government as it considers the timing, scope, and nature of legislation on open finance by: 

    • Sharing lessons from the implementation and supervision of open banking and the development of Pensions Dashboards
    • Working with the government and industry stakeholders to identify what industry roadmaps are needed to support legislation 
    • Helping convene industry-led efforts to develop common standards to support open finance
    • Assessing the regulatory framework needed to support open finance and working with the Information Commissioner’s Office to consider the need for any further guidance
    • Furthering open finance and digital identity propositions applying for sandbox and direct support
    • Supporting discussions on the future operating model for the Open Banking Implementation Entity

    As the implementation phase of open banking ends, the Competition and Markets Authority (CMA) is consulting on arrangements for the oversight of the future system. FCA will work closely with CMA and HM Treasury as they consider the results of this consultation. It will be important that the entity is flexible and able to respond to any future legislative requirements. FCA is keen that any entity be open in terms of participation and funded equitably and sustainably.

     

    Related Links

    Keywords: Europe, UK, Banking, Insurance, Securities, Open Finance, Fintech, Regulatory Sandbox, Regtech, Suptech, FCA

    Related Articles
    News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News
    News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News
    News

    IOSCO Welcomes Work on Sustainability-Related Corporate Reporting

    The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)

    September 15, 2022 WebPage Regulatory News
    News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    News

    BoE Allows One-Day Delay in Statistical Data Submissions by Banks

    The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.

    September 14, 2022 WebPage Regulatory News
    News

    ACPR Amends Reporting Module Timelines Under EBA Framework 3.2

    The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.

    September 14, 2022 WebPage Regulatory News
    News

    APRA to Modernize Prudential Architecture, Reduces Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.

    September 12, 2022 WebPage Regulatory News
    News

    PBC Issues List of Systemic Banks, Adds 2 Foreign Banks to CERB List

    The China Banking and Insurance Regulatory Commission (CBIRC) published the administrative measures for internal control of wealth management companies, which come into force on the day of promulgation.

    September 09, 2022 WebPage Regulatory News
    News

    PRA Publishes Discussion Paper on Its Future Approach to Policy

    The Prudential Regulation Authority (PRA) proposed its approach to policy-making as it takes on wider rulemaking responsibilities under the Financial Services and Markets Bill.

    September 08, 2022 WebPage Regulatory News
    News

    ECB Publishes Opinion on Proposed Regulation on Data Act

    The European Central Bank (ECB) published its opinion on the proposal for a regulation on harmonized rules on fair access to and use of data (Data Act).

    September 08, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8511