FCA publishes KPMG assessment of future open banking standards body and calls on industry to move promptly on next steps

The FCA published on 1 May 2026 an independent KPMG assessment of proposals to establish a future open banking standards-setting body, referred to throughout as the Future Entity.

What the report is for

The assessment was commissioned to support decision-making at a point when industry is leading the development of arrangements for a standards-setting body capable of becoming the Future Entity, subject to any future legislative framework. KPMG engaged with Open Banking Limited, Smart Data Group, members of the independent evaluation panel, and wider industry stakeholders in preparing the report.

The FCA is publishing the report to ensure broad and transparent access for stakeholders across the open banking ecosystem. It is intended to support industry considerations for next steps.

FCA calls on industry to act

The FCA has stated plainly that it expects industry to set out how it wishes to proceed with next steps promptly, and has confirmed it is ready to support the next stage of the process. Governance decisions that follow from this process will be relevant to payment firms and others relying on open banking infrastructure.

What comes next

A second KPMG report on operationalisation of the Future Entity is due to be published by the FCA in the coming weeks; scope and timeline beyond that are unconfirmed.

The broader regulatory calendar is relevant:

• The FCA plans to consult in Q3 2026 on Open Banking Long-Term Regulatory Framework interface rules to establish effective technical and operational standards, with final rules due in Q1 2027.
• The Data (Use and Access) Act Statutory Instrument is due to be laid in Parliament in Q4 2026. It will give the FCA the power to regulate Open Finance and oversee a central governing body.
• HM Treasury has a consultation paper due in Q2 2026 covering assimilated payment services including open banking and the use of stablecoins.

What firms should note

The full KPMG report has not been reviewed for this summary, and specific structural findings or preferred governance models are not yet reflected here. The immediate action is awareness: the FCA has set an expectation of prompt industry movement, and the legislative and rules timetable running through late 2026 into 2027 means the governance question will not remain open indefinitely.

Impact level: medium. Primarily relevant to payment firms, account information service providers (AISPs), and any firm whose infrastructure or product depends on open banking APIs. No immediate compliance obligation arises from this publication.