The BoE, the PRA and the FCA have developed a joint policy summary setting out new requirements for operational resilience for regulated firms and financial market infrastructures (FMI).
The work is spearheaded by coordinated consultation papers setting out proposals to require firms to prioritise operational resilience, and to develop plans and investment choices based on their impacts on the public interest.
While the specific proposals of each regulator are detailed in their respective consultation papers, overarching themes include:
- requiring firms and FMI to identify their important business services that, if disrupted, could cause harm to consumer or market integrity, threaten the viability of firms or cause instability in the financial system;
- firms setting impact tolerances for disruption to each important business service;
- identify and document the people, processes, technology, facilities and information that support their important business services.
The consultations close on 3 April 2020.