Regulatory AlertsFS21/7: Open finance – feedback statement
The UK Financial Conduct Authority issued this feedback statement summarizing responses to its December 2019 Call for Input on open finance opportunities and risks. The document outlines key themes including regulatory frameworks, common standards, and draft principles while identifying relevant stakeholders such as banks, insurers, and fintech businesses. The regulator commits to supporting government legislation on open finance by sharing lessons from open banking, developing industry roadmaps, and assessing necessary regulatory requirements.
We summarise the feedback we received to our Call for Input in December 2019. This explored the opportunities and risks from open finance, as well as how to ensure it develops in consumers’ interests and the role we could play.
Read FS21/7 (PDF)
In this feedback statement we set out the responses we received to the following areas:
maximising the potential of open banking
key themes and issues for open finance – including its risks and benefits, feasibility and cost, the necessary regulatory framework, common standards and infrastructure
our draft principles for open finance
our role and next steps
Who this applies to
This 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 intermediaries
investment managers
life insurers and pension providers
mortgage lenders and intermediaries
Background to this feedback statement on open finance
In our 2019/20 Business Plan we committed to leading the public debate on open finance and to setting up an advisory group to help drive forward our future strategy. This group is made up of industry experts, consumer and business representatives, academics and government departments. Its advice informed our Call for Input.
Since we published our Call For Input, the Government and industry have made progress on several open finance and open data-related initiatives. We’ve summarised this progress in the feedback statement.
Next steps
We will support the Government as it considers the timing, scope and nature of legislation on open finance. We will do this through:
sharing our 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 that would be needed to support open finance
supporting discussions on the future operating model for the Open Banking Implementation Entity (OBIE)
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