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

    OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities

    The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.

    May 17, 2022 WebPage Regulatory News
    News

    EBA Proposes Standards to Support Secondary NPL Markets

    The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.

    May 17, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).

    May 13, 2022 WebPage Regulatory News
    News

    EBA Issues Standards for Crowdfunding Service Providers Under ECSPR

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.

    May 13, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Securities and Markets Authority (ESMA) published a paper that examines the systemic risk posed by increasing use of cloud services, along with the potential policy options to mitigate this risk.

    May 12, 2022 WebPage Regulatory News
    News

    EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA

    The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.

    May 11, 2022 WebPage Regulatory News
    News

    EC Mandates ESAs to Propose Amendments to SFDR Technical Standards

    The European Commission (EC) has issued two letters mandating the European Supervisory Authorities (ESAs) to jointly propose amendments to the regulatory technical standards under Sustainable Finance Disclosure Regulation or SFDR.

    May 11, 2022 WebPage Regulatory News
    News

    EBA Examines Supervisory Practices, Issues Deposits Reporting Template

    The European Banking Authority (EBA) published its annual report on convergence of supervisory practices for 2021. Additionally, following a request from the European Commission (EC),

    May 11, 2022 WebPage Regulatory News
    News

    US Agency Publications Address Basel, Reporting, and CECL Developments

    The Farm Credit Administration published, in the Federal Register, the final rule on implementation of the Current Expected Credit Losses (CECL) methodology for allowances

    May 09, 2022 WebPage Regulatory News
    News

    SEC Extends Comment Period on Climate Risk Disclosures

    The U.S. Securities and Exchange Commission (SEC) looks set to intensify focus on crypto-assets and cyber risk and extended the comment period on the proposed rules to enhance and standardize climate-related disclosures for investors.

    May 09, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8186