BoE/PRA/FCA publish DP on operational resilience of critical third parties to the UK financial sector

Article summary

The Bank of England (BoE), the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) (together, the supervisory authorities) have set out in discussion paper PRA DP3/22 / FCA DP22/3, potential measures to oversee and strengthen the resilience of services provided by critical third parties (CTPs) to the UK financial sector which, in doing so, mitigate the risk to financial stability and harm to consumers which could be triggered by a failure or disruption to a CTP. Comments are requested by 23 December 2022. Subject to the outcome of Parliamentary debates on the Financial Services and Market Bill (FSMB), and having considered responses to the DP, the supervisory authorities plan to consult on their proposed requirements and expectations for CTPs in 2023.