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

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News

    ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite

    The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.

    December 22, 2022 WebPage Regulatory News

    FCA Sets up ESG Committee, Imposes Penalties, and Issues Other Updates

    The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.

    December 20, 2022 WebPage Regulatory News

    FSB Reports Assess NBFI Sector and Progress on LIBOR Transition

    The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.

    December 20, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8697