The UK's Competition & Markets Authority published proposals for the implementation of certain remedies to counter the adverse effects on competition which were identified in the CMA's final report on the retail banking market investigation. The CMA published its final report into the supply of retail banking services to personal current account customers and small and banking services to small and medium-sized enterprises (SMEs) in the UK in August 2016. In that report, the CMA made several recommendations, including the introduction of Open Banking, a single digital application that allows customers to manage their accounts with multiple providers. In response to that recommendation, the nine providers identified in the CMA's report have made proposals for the structure, membership, governance and funding arrangements of the Implementation Entity. It is proposed, amongst other things, that the Implementation Entity's Steering Group would comprise the nine providers as well as representatives of FinTechs, smaller "challenger" banks and payment service providers. Andrew Pinder has already been appointed as Implementation Trustee and will oversee the work of the Implementation Entity. Comments on the Implementation Entity proposals should be provided to the CMA by October 21, 2016.
The final report also stipulated a service quality remedy which will require banks to collect and publish service quality information to enable customers to compare providers more easily. The CMA committed to conducting research to inform the requirements that will be imposed on banks for the presentation of service quality information. The CMA has published the report undertaken by Research Works, requesting comments by October 31, 2016.
The statutory deadline for implementation of the CMA's remedies is February 8, 2017. The CMA will be consulting later this year on its draft Retail Banking Order and Undertakings.
View the Implementation Entity proposals.
View the research report.
View further information on the investigation.
