The Payment Systems Task Force, a unit of the Office of Fair Trading, has recommended a number of changes to improve the governance arrangements of LINK, an automated teller machine (ATM) switching network in the UK.
The group recommended that the LINK card scheme should reinforce its existing objectives to promote innovation, efficiency and the interests of consumers; continue with its plans to introduce a Standing Committee on Consumer Issues to represent the interests of consumers; and report back to the Task Force on the success of the recently introduced changes to its voting arrangements, following a 12 months review of effectiveness.
The group also concluded that members of the LINK card scheme and Post Office Ltd should continue to explore if a way acceptable to all parties can be found that would allow free cash withdrawals at Post Office counters for all consumers holding a current account with a major financial institution.
The Working Group also made recommendations about LINK Interchange Network Ltd, specifically, ownership of LINK Interchange Network should be opened up to new bodies, not restricted to banks and building societies, as is currently the case; a smaller, more effective Board should be introduced, which would include independent directors, and directors that had been voted on to the Board by the company’s owners; and the degree of separation between the card scheme and the company should be increased.