UK and EU Regulators Enhance Critical Third Party Oversight
The Financial Conduct Authority, Bank of England, and Prudential Regulation Authority have signed a Memorandum of Understanding with European Supervisory Authorities. This agreement enhances cooperation on critical third-party oversight to bolster financial stability.
Coordinated Oversight for Financial Stability
The MoU creates a framework for coordinating information and oversight of critical third parties under UK and EU rules.
This cooperation, vital during incidents like cyber-attacks, aims to manage financial stability risks and reduce regulatory burden.
Bolstering UK's Operational Resilience
The UK's CTP regime, effective January 1, 2025, complements international standards and is compatible with the EU's DORA.
The Treasury designates CTPs, which must provide assurance, test resilience, and report major incidents.
Financial firms remain responsible for managing their own operational resilience.