Written by Ciara Davies
The FCA has published a feedback statement on open finance.
The FCA views open finance as an opportunity to build on the concept of open banking by allowing consumers and SMEs to share their data with third party providers (TPPs).
The feedback statement summarises the responses received by the FCA to its December 2019 call for input on open finance and sets out comments received on maximising the potential of open banking, open finance and the FCA’s draft principles for open finance.
The FCA concludes that open finance has the opportunity to provide significant benefits to consumers and competition, though it does also create or increase risks. Appropriate regulation is essential to manage those risks and a legislative framework is needed for open finance to develop fully.
Going forward, the FCA proposes to work with the Department for Business, Energy and Industrial Strategy (BEIS) and HM Treasury on the design of any secondary legislation relating to open finance. It will also support the government in assessing the legislative and regulatory framework that would be needed.