Policy paper
Memorandum of Understanding between the Bank of England, FCA and PRA
This document outlines how the financial regulators will co-ordinate with respect to the exercise of their critical third party (CTP) functions.
Documents
Details
The Financial Services and Markets Act 2000 was amended in 2023 to address the risk to UK financial stability arising from the outsourcing of critical services by firms and financial market infrastructures to third party suppliers. The Act provides powers for the financial regulators to oversee the critical services of CTPs to the UK financial sector designated by HM Treasury.
This Memorandum of Understanding sets out how the financial regulators will co-ordinate, through a joint CTP Consultation and Coordination Forum, the exercise of their CTP functions.