The Joint Regulatory Oversight Committee (JROC) has launched two working groups to convene on variable recurring payments (VRPs) and the design of the future entity, respectively, as part of a wider programme of work to kickstart the next phase of Open Banking in the UK.
In addition, JROC has tasked Open Banking Limited with leading and coordinating workstreams on four of the other main themes recently outlined in its recommendations for the future vision of Open Banking.
JROC has published its terms of reference for the two new working groups.
The VRP Working Group (VRPWG), which is chaired by the Payment Systems Regulator (PSR), will develop a blueprint for the implementation of non-sweeping VRPs by the end of September 2023, with a view to a phased rollout of non-sweeping VRPs before year-end.
Membership of the VRPWG is to comprise at least seven industry representatives, “ensuring a fair representation of views across ASPSPs and TPPs”, an Open Banking Implementation Entity (OBIE) representative, a Pay.UK representative, two business representatives, including at least one from a utility company, and two consumer experts and/or consumer groups representatives, as well as JROC members.
Additional subject matter experts may be invited by the chair to participate in VRPWG meetings.
Meanwhile, the Design of the Future Entity Working Group (FEWG) will be chaired by the Financial Conduct Authority and will have a membership that is reflective of “the whole ecosystem”.
JROC has confirmed members of FEWG will need to include at least seven industry representatives, with a balance of representation across ASPSPs and third-party providers, an OBIE representative, a Pay.UK representative, two business representatives, two consumer experts and/or consumer groups representatives, and JROC members.
FEWG members will develop the options and design for the future entity, including recommendations in relation to the role, the structure, funding and governance.
JROC co-chairs, PSR’s managing director, Chris Hemsley, and the FCA’s executive director, consumers and competition, Sheldon Mills, said: “Now that we have a roadmap in place to deliver on the next phase of Open Banking, it’s vital that we work collaboratively and at pace to progress the key priorities we identified.
“These dedicated workstreams, including the two new working groups on VRP and future entity, will make sure the correct foundations are in place for Open Banking to grow in a safe and sustainable way.”
The respective chairs of VRPWG and FEWG are expected to provide monthly progress updates to JROC, review and approve outputs and ensure the work is delivered within the established timelines, as well as make decisions in relation to the working group deliverables being presented to JROC.
In a letter to Open Banking Limited’s trustee and chair Marion King, and chief executive officer Henk Van Hulle, JROC has asked the organisation to lead the delivery of the remaining four themes, detailing activities and timelines within each.
The themes are levelling up availability and performance, mitigating the risks of financial crime, developing proposals for dispute processes, and improving information flows to TPPs and end users.
Listen to OBL’s Marion King on the Open Banking Expo Unplugged podcast, discussing how she sees the organisation operating as “a guardian of standards” as it transitions to a new entity or entities.