The future of open banking and the Joint Regulatory Oversight Committee

In June 2023, the Joint Regulatory Oversight Committee set out an ambitious programme of work to take forward recommendations for the next phase of open banking in the UK. This includes the creation of two regulator-led working groups. The groups will develop the framework for the expansion of variable recurring payments and the design of the future open banking entity. We published each of their terms of reference.

JROC has also published a joint paper on principles for commercial frameworks for premium APIs. As one of the actions outlined in JROC’s recommendations, this paper aims to promote additional services, using non-sweeping variable recurring payments as a pilot. The principles set out will ensure that charges and fees paid by third party providers to banks and other payment providers are fair and proportionate.


This work is crucial in realising the full potential of open banking, as set out in the committee's recommendations published in April 2023. The report focuses on actions identified as key to achieving the committee’s vision, including transitioning open banking to a future entity. It provides the committee’s latest thinking on the role and design of the future entity and the next steps to refine these views. 

It also includes a phased roadmap, comprising of five themes of activities to be delivered over the next two years and an update on the government's thinking on a long-term regulatory framework once the foundations for the next phase of open banking are in place. The committee will publish a progress update in Q4 2023. 

The committee’s recommendations build on a joint statement, published by the FCA, PSR, CMA and HM Treasury in December 2022, outlining its vision and early thinking on the design of the future entity. 

The committee has continued to work at pace to implement these recommendations and has in December 2023 published an update on the progress made. The update sets out the key next steps as we continue to work with the ecosystem to prepare open banking for the future.

The committee has also considered the blueprint developed by the variable recurring payments (VRP) working group and has published a response. This sets out the plan for expanding the use of VRP so consumers can benefit from innovative, flexible payment methods across a range of sectors.

In line with the committee’s recommendations, the PSR and the committee has also launched a consultation on the commercial model needed to support the expansion of VRP. It is seeking views on this consultation. Please find further details here.

The Joint Regulatory Oversight Committee

In March 2022, the FCA, PSR, CMA and HM Treasury published a joint statement on the future of open banking, announcing the creation of a Joint Regulatory Oversight Committee. The committee, co-chaired by the FCA’s Executive Director, Consumers and Competition, Sheldon Mills, and PSR’s Managing Director, Chris Hemsley, held its first meeting on 12 May 2022, where the Terms of Reference for the committee were agreed. In future, we will publish summary minutes of the committee meetings as referred to in the Terms of Reference.

The role of the committee is to:

  • oversee the planning and preparation for the future open banking entity (future entity)
  • oversee the transition to the future framework
  • consider the vision and strategic roadmap for further developing open banking
  • oversee and, where applicable, monitor the future entity, once set up, until a permanent regulatory framework is in place

Set up of the VRP working group and future entity working group 

In June 2023, JROC has set up dedicated workstreams to action the six key themes and priorities as outlined in our recommendations. 

This includes launching two new working groups on variable recurring payments (VRP) and future open banking entity. The VRP working group, chaired by the PSR, will develop a blueprint for the phased roll-out of non-sweeping VRP by the end of September 2023. The future entity working group, chaired by the FCA, will consider the design of the future open banking entity, including its role, structure, and funding. It will also set out proposals around how the future entity can be implemented. The working group will report to the JROC by the end of September 2023 and the JROC will publish its views in an update towards the end of 2023. 

Minutes of the working groups will be published. 

Set up of the strategic working group (SWG)

The committee members believe there is potential to build on the progress to date of open banking, to drive further benefits for consumers and businesses, and maintain the UK’s position as a leader in innovation. The committee sees opportunities in unlocking the potential of open banking payments, enabling end-users to share data, managing access, and developing further data-sharing propositions. This includes greater consumer protection and to ensure open banking remains interoperable with any possible future open finance initiatives.

The committee is keen to work closely with the industry and other key stakeholders.

As part of this, the strategic working group (SWG) a non-decision-making consultative forum, was convened in Q3 2022 to collate stakeholders’ views and input on ways to further develop open banking, to help inform the recommendations of the committee. The SWG was independently chaired by Bryan Zhang. Its final report can be found here.

Our letter to Open Banking Implementation Entity (OBIE) and OBIE's response provide further detail on the objectives and expected deliverables of the SWG. The news update provides further information on the appointment and role of the SWG chair, as well as the supporting role the committee’s co-chairs asked the OBIE to play.

Further detail on the SWG, including its final report, terms of reference, and other updates, are available on the SWG website

Committee meetings – discussions and actions

Progress on OBL-led Working Groups 

OBL has published two data collection frameworks on API availability and fraud respectively. This constitutes the completion of two actions set out in the JROC report under the themes of ‘Levelling up availability and performance’ and ‘Mitigating the risks of financial crime’, which OBL have been leading and coordinating, under JROC’s oversight.

Page updates

: Information added Committee meetings notes from October 2023 onwards.
: Link changed Broken link correction
: Information added update on progress of all the workstreams identified in the recommendations report
: Information added Committee meetings – discussions and actions updated
: Information added Publication of recommendations for the next phase of open banking in the UK
: Document added Strategic Working Group: Terms of Reference added