A new regime for critical third party providers to UK financial services firms is on the horizon

On 21 July 2022 the Bank of England, the PRA and the FCA published Discussion Paper 22/3 - Operational resilience: Critical third parties to the UK financial sector (DP22/3). DP22/3 sets out how the financial services regulators could use new powers proposed under the Financial Services and Markets Bill (FSM Bill) to assess and strengthen the resilience of material services provided by critical third parties to the UK financial services sector. Publication of DP22/3 marks an early step on the road to the introduction of a new designation regime for third party providers in respect of the material services they provide to the financial services sector. Read more

Operational Resilience: What’s next?

We have updated our Operational Resilience timeline to include key recent developments from the UK, EU, Hong Kong, Singapore, Australia and international standard setting bodies.  Operational resilience is the ability to 'prevent, adapt, respond to, recover and learn from operational disruptions'. Read more

Moving on up… PRA raises the Op Res bar to HoldCo level

When the UK authorities published their final policy on operational resilience at the end of March 2021, it was broadly acknowledged – including by the PRA itself – that the operational resilience landscape would continue to develop. The latest act on the UK stage is the PRA's proposals to apply the group provisions in the Operational Resilience Part of the PRA Rulebook relevant to Capital Requirements Regulation (CRR) firms to holding companies. Read more

PRA Deputy CEO Lyndon Nelson makes the case for operational resilience: “There is no operator of last resort function in Threadneedle Street”

With the UK regulators' operational resilience policy package finalised at the end of March, an early May speech from Lyndon Nelson, PRA Deputy CEO & Executive Director of Regulatory Operations and Supervisory Risk Specialists was well-timed. Mr Nelson's authoritative voice has guided the evolution of operational resilience as a regulatory – or perhaps more particularly, a supervisory – concept for a number of years on both the UK and the global stages. Read more