Independent assessment to support establishment of a Future Entity
| UK
AI Analysis
The FCA has appointed KPMG to conduct an independent assessment of proposals for establishing a **Future Entity** – a standards-setting body for UK open banking APIs that will replace Open Banking Limited. This initiative is critical because it establishes the governance framework for open banking ahead of new legislative powers the FCA will receive under the Data (Use and Access) Act 2025, with a statutory instrument expected by end-2026.
Key dates
- Q1 2026
- – Final design of Future Entity expected; live transactions expected through VRP scheme
- End of 2026
- – FCA expected to consult on Long-Term Regulatory Framework; statutory instrument for Open Banking expected to be laid by HM Treasury
- February 2026
- – Independent assessment process begins; KPMG commences evaluation of proposals
- Before March 2026 Deadline
- – FCA's Open Finance roadmap due for publication
- Early April 2026
- – KPMG delivers final assessment report; FCA publishes on its website
- From April 2026
- – Industry and regulators collaborate to progress establishment activity
Suggested considerations
- *For industry participants and trade associations:
- *Engage with the assessment process: Participate in the independent assessment by submitting proposals or supporting existing proposals for Future Entity leadership
- *Arrange FCA Q&A sessions: Organizations interested in leading Future Entity establishment should contact the FCA directly to schedule one-hour Q&A sessions ahead of the independent consultancy process launch
- *Coalesce behind proposals: Industry should decide which proposal option should lead the next phase of work, with the FCA commissioning assessment of either multiple proposals or a single industry-supported proposal
- *Prepare for VRP implementation: Ensure systems and processes are ready for live Variable Recurring Payments transactions expected in Q1 2026
- *Monitor legislative developments: Track HM Treasury's introduction of legislation under the Data (Use and Access) Act 2025 and prepare for new FCA rulemaking powers
What changed
- The regulatory landscape for UK open banking is undergoing fundamental restructuring:
- Transition of regulatory authority: The FCA is becoming the primary regulator for open banking, replacing the Joint Regulatory Oversight Committee (JROC).
- Future Entity establishment: A new standards-setting body will become the primary UK standard-setting organization for open banking APIs, responsible for setting and maintaining common standards for minimum service and interoperability, monitoring AP
- Independent assessment process: KPMG will evaluate competing proposals from industry participants to determine which organization should lead the Future Entity establishment.
- Legislative framework: HM Treasury will introduce legislation granting the FCA new rulemaking powers for open banking under the Data (Use and Access) Act 2025.
- Interface body regulation: The Future Entity and commercial scheme operators will be regulated as "interface bodies" under the Data (Use and Access) Act 2025.
Compliance impact
Urgency: HIGH
Who is affected
Related regulations
References
AI-generated analysis. May contain errors or omissions — verify with the original FCA source before acting. Full disclaimer.
What the FCA said
We have published a letter to trade associations to provide an update in the development of a Future Entity (FE) for open banking. The letter confirms the appointment of KPMG to provide an independent assessment of proposals to establish a standards-setting body for UK open banking APIs that is capable of becoming the…
Extract from FCA . Read the full notice at the source for the authoritative text.