Consultation opens
07/12/2023
Consultation closes
15/03/2024
15/03/2024
CP23/30: Operational resilience: Critical third parties to the UK financial sector
We set out, jointly with the PRA and the Bank, the proposed requirements and expectations for critical third parties (CTPs).
Why we are consulting
We want to manage risks to the stability of, or confidence in, the UK financial system that could arise from a failure in, or disruption to, a CTP’s services.
The proposals in this CP would allow us, alongside the PRA and the Bank, to monitor and manage these risks in an effective but proportionate manner.
Who this is for
The CP is primarily relevant to CTPs but is also relevant to firms and financial market infrastructure (FMI) firms.
Next steps
Send your comments to [email protected] by 15 March 2024.
Background
UK financial services firms increasingly rely on third-party services to support their operations. These bring multiple benefits. But this increasing reliance also poses systemic risks to UK financial stability, market integrity and consumer protection.
FSMA 2023 granted the regulators (the FCA, PRA and Bank) and the Treasury powers in relation to CTPs. The regulators’ new statutory powers seek to enable them to intervene to raise the resilience of the services that CTPs provide to firms and FMIs thereby reducing the risk of systemic disruption to the financial sector.
In DP22/3: Operational resilience: Critical third parties to the UK financial sector, which we issued jointly with the PRA and the Bank, we sought views on potential policy measures to manage the systemic risks posed by certain third parties to the UK financial sector.
In this CP, we explain how and where responses to DP22/3 have informed our proposals.