Source: FCA
The Financial Conduct Authority (FCA) has been named by the National Payments Vision (NPV) as the lead regulator for the next phase of UK Open Banking. With the Joint Regulatory Oversight Committee (JROC) now wound down, the FCA will take forward work to ensure Open Banking continues to deliver on its potential – from driving growth and simplifying regulation to improving financial lives and tackling crime.
Over the past year, the UK has seen major progress in Open Banking, including the Data (Use and Access) Act 2025 (DUAA) receiving royal assent. Over the past six months, the FCA has monitored an industry-led initiative to create a new, industry-owned body that will operate a commercial scheme to enable the rollout of variable recurring payments (VRP) in 2025. This is expected to unlock a range of new use cases, from paying utility bills to settling taxes.
The Future Entity
Subject to future legislation, the new “Future Entity” will become the UK’s primary standard-setting body for Open Banking APIs. Operating as a not-for-profit company limited by guarantee, it will:
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Setting common standards that will provide a minimum level of service and interoperability across Open Banking services.
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Monitoring API performance.
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Ensuring adherence to relevant standards (including providing information to the FCA).
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Providing directory and certification services.
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Working with multilateral agreement (MLA) owner/operators to develop standards that enable commercial schemes.
The Future Entity will be industry-funded on an equitable basis and will not be a public body or hold enforcement powers. Over time, its remit could expand into Open Finance.
Industry reaction:
Henk Van Hulle, chief executive officer of Open Banking Limited
Henk Van Hulle, CEO, Open Banking Limited, commented: “We welcome this update on the Future Entity as a pivotal step toward delivering a world-class Open Banking ecosystem in the UK. Clarity on its design and direction marks a critical moment, not just for our sector, but for the millions of consumers and businesses who stand to benefit from this innovation through greater financial empowerment, and for UK Plc. through greater economic growth.
As stewards of the UK’s Open Banking infrastructure, Open Banking Limited stands ready to support a smooth transition into this next phase. We look forward to working in close partnership with HM Treasury, FCA, PSR, CMA, and the wider industry to help deliver a Future Entity underpinned by robust governance, a sustainable commercial model, and a commitment to user outcomes.”
Commercial Schemes Layer
Alongside the Future Entity, a competitive layer of industry-led commercial Open Banking schemes will emerge. These schemes, which may be for-profit or not-for-profit, will develop the rules governing firm interaction and consumer protection, leveraging the API standards set by the Future Entity to ensure interoperability.
While the Future Entity will not typically own or operate commercial schemes, it may do so in areas where there is no commercial incentive or to address market failures. Both the Future Entity and commercial scheme operators will be regulated as interface bodies under the DUAA.
Further reading: FCA to publish Open Finance rollout ‘roadmap’ within a year
