The City regulator has announced changes to limit the risk of disruption to open banking services after Brexit.
The Financial Conduct Authority (FCA) will allow UK-based third-party providers (TPPs) to use an alternative to eIDAS certificates to access customer account information from account providers, or initiate payments, after Brexit.
This comes after the European Banking Authority announced in July that eIDAS certificates of UK TPPs would be revoked when the transition period ends on 31 December 2020.
eIDAS certificates are required for TPPs to identify themselves to account providers and allow firms to interact and share customer account information online in a trusted and secure way.
Therefore, the regulator has allowed TPPs to rely on an alternative certificate. Without this intervention, TPPs would not be able to provide open banking services to consumers post Brexit.
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Furthermore, account providers, such as banks, will likely need to make technical changes to their systems to enable TPPs to continue accessing customer account information.
This is done by accepting an alternative certificate and informing TPPs as soon as possible which certificates they will accept.
The FCA said that businesses must review the changes immediately and implement any necessary changes as soon as possible. The regulator said it will provide a transition period until the end of June 2021 for complying with its rules.
“Firms must act to ensure they can continue to provide open banking services,” the FCA said in a blog on its website.