On October 14, 2016, 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 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 were due 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 for consultation,
proposed visual representations of service quality indicators. The
CMA has also published the report undertaken by Research Works. The
CMA is requesting comments on the representations and the Research
Works report by October 31, 2016.
The CMA also published the British Bankers' Association
proposals, developed with and on behalf of the banks, to implement
standardized business current account opening procedures. The CMA
will require banks with at least 20,000 active business current
accounts to agree and adopt standardized core information and
evidence requirements for SMEs seeking to open a business current
account. The proposal covers, amongst other things, core standard
information and evidence requirements to open an account, the
categories of relevant SMEs, and an implementation timetable which
sets a final implementation time of Q1 2018.
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