The Uncertain Path Towards Open Finance: Mutual Lessons from the United Kingdom and European Union Regulatory Approaches

Martins Pereira, Clara

Abstract

The world is witnessing a new dawn in finance, first with the popularisation of Open Banking, and more recently with a gradual transition into Open Finance. Around the globe, different regulatory approaches to these phenomena provide fertile ground for comparative analysis. Looking at the UK and the EU, in particular, illuminates not just the future of regulation in this field, but also the broader relationship developing between both jurisdictions in a post-Brexit world.

This piece embarks on this comparison by: first, analysing the UK and EU approaches to Open Banking and Open Finance; second, determining whether signs for convergence/divergence can already be identified; and third, highlighting the importance of both jurisdictions learning from each other on their paths towards Open Finance. Ultimately, it is argued that the EU should learn from the UK’s staggered approach to Open Finance and reflect on the importance of reciprocity to address the uneven playing field seemingly created by its own proposed framework. The UK should also look at recent regulatory developments in the EU for an indication of how broad standardisation requirements can be operationalised, and of how mandatory compensation arrangements can help unlock the full potential of the country’s nascent Open Finance ecosystem.

Citation

Martins Pereira, C. (in press). The Uncertain Path Towards Open Finance: Mutual Lessons from the United Kingdom and European Union Regulatory Approaches. In A Research Agenda for Financial Law and Regulation. Edward Elgar Publishing

• Deposit Date: May 30, 2024
• Publisher: Edward Elgar Publishing
• Series Title: Elgar Research Agendas
• Book Title: A Research Agenda for Financial Law and Regulation
• Public URL: https://durham-repository.worktribe.com/output/2468472
• Publisher URL: https://www.e-elgar.com/
• Contract Date: Apr 21, 2024