FSB adds to guidance on operational continuity

The FSB has added a supplementary note to its 2016 guidance on arrangements to support the continuity of critical shared services in the event of resolution. The guidance, which assists supervisory and resolution authorities in assessing whether financial institutions subject to resolution planning requirements have sufficient arrangements to support operational continuity in the event of resolution, has been updated to reflect the digitalisation of critical shared services.

Increasing digitalisation of financial services firms has created a greater reliance on third-party service providers in maintaining critical shared services which, if not managed appropriately, could negatively affect the continued provision of critical functions and threaten orderly resolutions. Rather than producing new guidance or requirements, the supplementary note provides advice on how firms and authorities can best approach the continuity of digitalised critical shared services in resolution.