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FCA consultation – Call for Input (CFI) about open finance

FCA consultation – Call for Input (CFI) about open finance

 

Background

  • The FCA first published a “Call for Input” about open finance on 17 December 2019. The consultation period closes on 1 October 2020.
  • That 38-page document was updated on 18 March 2020. In August 2020, the FCA issued a reminder to all firms about this Call for Input.
  • The document can be found here 
  • The FCA is keen to explore the opportunities and risks arising from open finance to ensure that open finance develops in the best interests of consumers.

Impacts

Increased use of data and technology is changing financial markets. It has led to greater innovation as new business models have emerged for firms to engage with their customers.

The UK has led on this with the development of open banking where consumers and small businesses can give access to their payment account data to third-party providers to get new services.

Open finance would extend open banking principles to give consumers and businesses more control over a wider range of their financial data, such as savings, insurance, mortgages, investments, pensions and consumer credit. It has the potential to deliver transformative benefits for consumers and open finance participants alike.

The Call for Input is suggested by the FCA to apply to the following groups:

  • 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
  • mortgage lenders and intermediaries

Timeline with relevant dates to be logged on regulatory calendar

  • FCA Consultation closes on 1 October 2020

Next steps

The FCA has asked all firms for comments by 1 October 2020.

Comments can be submitted using an online response form, e-mail or in writing to named contacts at the FCA.

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