FS Policy Explainer | The Digital Tech Sector’s Views on the Critical Third Parties Regulatory Regime | DP3/22
13 Apr 2023 05:56 PM
Following the FCA’s important Discussion Paper (DP3/22) covering the UK Government’s proposed regulatory regime covering Critical Third Parties within the financial system, the regulator is now seeking the input of members to understand the cost involved in implementing this work
The UK’s financial system increasingly relies on digital technology services and infrastructure within institutions’ operations. The Financial Services and Markets Bill sets out a statutory framework for overseeing the regulatory focus covering these vital processes, in relation to wider strategic focuses of systemic resilience.
The information being collected in this survey (DP3/22) will help regulators understand the costs to potential ‘Critical Third-Parties’ implementing a potential critical third-party regime in the UK. The results of this will be used to help inform future consultation options as well as the cost-benefit analysis for the consultation;
- Members have been asked, where possible, to provide cost estimates for implementing and ensuring ongoing compliance with potential minimum resilience standards and testing requirements in line with those set out in DP3/22.
- Members have been asked to provide best endeavours estimates based on resilience standards and testing requirements being applied to a single service that is provided to clients. The survey does include the option to provide an estimate for additional service.
Access to the Survey can be found here, the deadline for responses is 17 May 2023.
Further detail regarding this policy area can be found within techUK’s response to DP3/22 here.