The UK’s Financial Conduct Authority (FCA), Prudential Regulation Authority (PRA) and the Bank of England have published coordinated consultation papers on new requirements to strengthen operational resilience in the financial services sector.
The consultation affects a range of entities including firms authorised and registered under Payment Services and E-Money regulations. It is proposed that firms:
- identify their important business services that if disrupted could cause harm to their consumers (retail and wholesale) or market integrity
- set impact tolerances for each important business service (i.e. thresholds for maximum tolerable disruption to help achieve consumer protection and market integrity)
- identify and document the people, processes, technology, facilities and information that support their important business services (mapping)
- test their ability to remain within their impact tolerances through a range of severe but plausible disruption scenarios
- conduct lessons learnt exercises to identify, prioritise, and invest in their ability to respond and recover from disruptions as effectively as possible
- develop internal and external communications plans for when important business services are disrupted
Industry views on the proposals are invited until 3 April 2020.
For further information and to respond to the consultation visit: https://www.fca.org.uk/publications/consultation-papers/cp-19-32-building-operational-resilience-impact-tolerances-important-business-services