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

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News
    News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News
    News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News
    News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News
    News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News
    News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News
    News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News
    News

    ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite

    The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.

    December 22, 2022 WebPage Regulatory News
    News

    FCA Sets up ESG Committee, Imposes Penalties, and Issues Other Updates

    The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.

    December 20, 2022 WebPage Regulatory News
    News

    FSB Reports Assess NBFI Sector and Progress on LIBOR Transition

    The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.

    December 20, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8697