Featured Product

    PRA Consults on Framework to Manage Outsourcing and Third-Party Risk

    December 05, 2019

    PRA published a consultation paper CP30/19 that sets out proposals to modernize the regulatory framework on outsourcing and third-party risk management. These proposals are set out in the draft supervisory statement on outsourcing and third-party risk management in the Appendix to CP30/19. PRA proposes to publish the final policy on these proposals in the second half of 2020, with implementation of most the proposals shortly after. This consultation closes on April 03, 2020.

    The proposals pursue the following objectives:

    • Complement the policy proposals in CP29/19 on operational resilience.
    • Facilitate greater resilience and adoption of the cloud and other new technologies, as set out in response of BoE to the "Future of Finance" report.
    • Implement the EBA guidelines on outsourcing arrangements. The draft supervisory statement clarifies how PRA expects banks to approach the EBA Outsourcing Guidelines in the context of its requirements and expectations. In addition, certain chapters in the draft supervisory statement elaborate on the expectations in the EBA Outsourcing Guidelines. 
    • Take into account the draft EIOPA guidelines on outsourcing to cloud service providers and EBA guidelines on information and communication technology and security risk management.

    Certain proposals, which derive from the EBA Outsourcing Guidelines or (if adopted in the current form) the draft EIOPA Cloud Guidelines, would be subject to longer implementation periods, particularly those that relate to the

    • Register of outsourcing arrangements (Outsourcing Register)
    • Revision by banks of outsourcing arrangements entered into before September 30 2019 and revision by insurers of cloud Outsourcing arrangements entered into before July 01, 2020 (Legacy Outsourcing Arrangements), to bring them into compliance with the EBA Outsourcing Guidelines and EIOPA Cloud Guidelines, respectively.

    The consultation paper is relevant to all UK banks, building societies, and PRA-designated investment firms, insurance and reinsurance firms, groups in scope of Solvency II, including the Society of Lloyd’s and managing agents, and branches of overseas banks and insurers. Some of the proposals in CP30/19 are relevant to credit unions and non-directive firms namely those in paragraph 2.3 of CP30/19; PRA rules, statutory powers, and requirements referenced in tables 2, 5, and 6; and paragraphs 5.11-5.12. In line with the principle of proportionality, PRA proposes not to apply the remaining sections of the draft supervisory statement to credit unions and non-directive firms.

     

    Related Links

    Comment Due Date: April 03, 2020

    Keywords: Europe, UK, Banking, Insurance, Securities, Reinsurance, CP 30/19, Cloud Service Providers, Proportionality, Operational Resilience, Third-Party Arrangements, Operational Risk, Outsourcing Arrangements, EBA, EIOPA, PRA

    Featured Experts
    Related Articles
    News

    PRA Finalizes Approach to Supervision of International Banks

    In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.

    July 26, 2021 WebPage Regulatory News
    News

    FCA Issues PS21/9 on Implementation of Investment Firms Regime

    The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.

    July 26, 2021 WebPage Regulatory News
    News

    EBA Proposes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.

    July 26, 2021 WebPage Regulatory News
    News

    IOSCO Proposes Recommendations on ESG Ratings and Data Providers

    The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.

    July 26, 2021 WebPage Regulatory News
    News

    EC to Defer Application of SFDR Standards Till July 2022

    The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.

    July 23, 2021 WebPage Regulatory News
    News

    EIOPA Consults on Reporting and Disclosures Under Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) proposed to amend the supervisory statement on supervision of run-off undertakings that are subject to Solvency II regulation.

    July 23, 2021 WebPage Regulatory News
    News

    BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance

    The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.

    July 22, 2021 WebPage Regulatory News
    News

    EBA Seeks Views on Proportionality Assessment Methodology

    The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.

    July 22, 2021 WebPage Regulatory News
    News

    US Agencies Propose Changes to Call Reports and Instructions

    Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.

    July 22, 2021 WebPage Regulatory News
    News

    PRA Finalizes Rulebook Definition of Higher Paid Material Risk-Taker

    The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.

    July 21, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7293