The FCA’s long-awaited feedback statement on open finance has been published. Findings from December 2019’s call for input suggest that, although there is a place for a regulatory framework to set outcomes, the best way forward is via industry-led phased implementation based on credible use cases. Taking account, among other things, of the on-going impact of the COVID-19 pandemic on firms’ resources, a ‘big bang’ approach to open finance is neither ‘feasible [n]or desirable’. This ties in with the Kalifa Review of UK FinTech, which recommends progressing open finance as a mandatory regime with phased implementation as one of the strands of a wider project to develop and implement a data strategy. Firms should be ready for more engagement with the FCA on its feedback statement in the coming weeks.
Long-awaited and much-delayed, the FCA has finally published its Feedback Statement in response to its December 2019 Call for Input (CFI) on Open Finance. But was it worth the wait?
In short, Open Finance offers huge potential but massive challenges. The FCA is keen to support and promote it but seems to prefer the industry to take the lead, whilst recognising that only a legislative framework, compulsion and common standards will truly unlock the potential.
Some of the key findings that the FCA draws out in its feedback statement are:
The feedback statement sets out a number of proposed next steps for the FCA, including:
If you would like to discuss any aspects of the FCA’s feedback statement with us, please contact any of the people named on this publication or your usual Hogan Lovells contact.
Authored by James Black and Virginia Montgomery
Are you sure want to delete comment ?
Scan this QR Code to share this content