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By Huw Jones
LONDON, Oct 1 (Reuters) - An organisation set up to promote
open banking in Britain had poor governance and failed to stop
bullying and intimidation of staff, an independent investigation
instigated by the Competition and Markets Authority (CMA) said
on Friday.
The Open Banking Implementation Entity (OBIE) was set up in
2017 under the CMA's orders by Britain's nine biggest lenders to
share transaction data with new entrants and promote competing
services in a sector long-dominated by a handful of banks.
The inquiry was called for by the CMA a year ago and looked
into corporate governance, late delivery of accounts, management
of conflicts, procurement, value for money and staffing issues.
"It found that inaction and failures by the leadership of
the OBIE allowed a culture of bullying and intimidation to
prevail," the CMA said in a statement on Friday.
"Separately, it found there was a failure properly to manage
conflicts of interest at the organisation and though it did not
find any evidence that this was exploited for private gain,
there was an unacceptable risk that it might have done so."
OBIE's head, known as a trustee, Imran Gulamhuseinwala, did
not ensure that the OBIE was properly managed and had too much
power with too few checks and balances, the CMA added.
Gulamhuseinwala has resigned and is being replaced by
Charlotte Croswell, who joined OBIE this year, the CMA said. New
non-executive directors will be appointed as a priority.
"It has been my privilege to serve in the role of the open
banking implementation trustee when I picked up the reins in
2017," Gulamhuseinwala said in a statement.
The investigation concluded that the CMA, and the nine
retail banks who set up OBIE, must accept their share of
responsibility for not putting in place stronger governance
mechanisms from the outset, the statement said.
The CMA must also study lessons from the failings in how
OBIE was run, Chair Jonathan Scott said, adding it was therefore
launching a review.
(Reporting by Huw Jones; Editing by Alexander Smith)
