Along with Gulamhuseinwala’s resignation and the CMA’s recommendation of Crosswell, the regulator also said new non-executive directors will be appointed to the OBIE board “as a priority, to provide appropriate independent scrutiny and oversight”.
Kirstin Baker, an independent non-executive director of the CMA, has been appointed to lead a review “to identify the lessons for the CMA in its approach to designing, implementing and monitoring remedies in its market investigations”.
“The findings of the Alison White investigation will be taken into consideration in relation to the future governance arrangements for Open Banking, alongside responses received to the CMA consultation earlier this year,” the CMA concluded.
Investigations prompt CMA review
Jonathan Scott, the CMA’s chairman, said: “The investigation has identified significant failings that require a swift and substantial response. It found that serious allegations – including of bullying, harassment, discrimination and victimisation – were not investigated properly by the OBIE and it concluded that this reflected failures in both the management and the governance of the OBIE.
“This is simply unacceptable and we agree with Alison White that everyone involved needs to accept their share of the responsibility for this and act on the lessons learned. It is clear change is needed.
“The CMA has a responsibility to learn lessons from the failings identified in the governance of the OBIE.”
Scott has therefore announced an internal review at the CMA. It will evaluate “the lessons to be learned for our approach to designing, implementing and monitoring remedies in market investigations”, according to Scott.
“I would like to thank the complainants who raised these issues for doing so as without them these serious issues may have remained unaddressed.
“The report raises questions about the complainants’ right to compensation and I would expect these questions to be considered carefully and with an open mind by the new leadership of the OBIE.”