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Banking tech bullying inquiry tests watchdog’s mettle

Whistleblowers additionally alleged that acquaintances of senior managers have been employed on profitable day charges at OBIE with out correct due diligence and with out delivering worth to the operation.

One of the previous senior insiders says: “I can think of six or seven people connected with each other who were brought in and delivered nothing.” Another says: “There were people on the payroll who you’d never see.”

An OBIE spokesman stated it had offered its “full support and cooperation to the independent review”.

‘Lack of oversight’

But the saga additionally places the CMA, because the regulator mandated to advertise competitors in monetary markets, beneath the highlight.

A 3rd former senior insider at OBIE says: “A lot of the fault lies with how the CMA set up OBIE and the lack of oversight the regulator provided. It did nothing to rein it in. And by sitting on the independent report, it shows they’re not taking it seriously.”

A spokesman for the CMA stated: “The CMA decided an independent investigation was needed in response to serious allegations about the Open Banking Implementation Entity. The CMA recently received the findings of this investigation and is finalising the appropriate next steps as a priority.”

The regulator is within the technique of finalising a session in regards to the future structure of open banking within the UK. UK Finance, which represents the 9 banks that fund OBIE, has proposed a brand new entity which might give banks a larger position for scrutiny, together with a brand new chairman that may be voted by companies with “weighted” voting rights.

It is assumed Gulamhuseinwala needs to stay head of any new entity.

OBIE was arrange by the CMA in 2016 to advertise open banking reforms among the many nation’s largest banks in an try to encourage them to permit rivals and expertise start-ups to entry buyer data. One of the previous insiders says the unit is a “valuable asset” for UK Plc nevertheless it has been let down by way of mismanagement and weak oversight.

“The CMA are making things worse now by not publishing the report. It’s ultimately bad for the reputation of open banking,” they add.

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