Financial regulators in the UK and EU have signed a memorandum of understanding (MoU) in order to strengthen cooperation and oversight of critical third parties that fall (CTPs) under the UK’s CTP regime and critical third party providers (CTPPs) under the EU’s DORA regime.
The MoU aims to manage potential financial stability risks, enhance international cooperation and reduce duplication and regulatory burden on CTPs and CTPPs.
The UK signatories are the FCA, PRA and BoE, and the EU signatories are the EBA, EIOPA and ESMA.