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 Consults on Implementation of Certain Provisions of CRD5

    PRA, via the consultation paper CP12/20, proposed changes to its rules, supervisory statements, and statements of policy to implement certain elements of the Capital Requirements Directive (CRD5).

    July 31, 2020 WebPage Regulatory News
    News

    EIOPA Report Identifies Key Financial Stability Risks for Insurers

    EIOPA published the financial stability report that provides detailed quantitative and qualitative assessment of the key risks identified for the insurance and occupational pensions sectors in the European Economic Area.

    July 30, 2020 WebPage Regulatory News
    News

    EBA Publishes Risk Dashboard for First Quarter of 2020

    EBA published its risk dashboard for the first quarter of 2020 together with the results of the risk assessment questionnaire.

    July 30, 2020 WebPage Regulatory News
    News

    EBA Issues Updates on Stress Test Exercise for Banks in EU

    EBA announced that the next stress testing exercise is expected to be launched at the end of January 2021 and its results are to be published at the end of July 2021.

    July 30, 2020 WebPage Regulatory News
    News

    PRA Proposes Guidance Related to Matching Adjustment under Solvency II

    PRA published the consultation paper CP11/20 that sets out its expectations and guidance related to auditors’ work on the matching adjustment under Solvency II.

    July 30, 2020 WebPage Regulatory News
    News

    MAS Issues Guidance on Dividend Distributions by Banks

    MAS published a statement guidance on dividend distribution by banks.

    July 30, 2020 WebPage Regulatory News
    News

    APRA Updates Guidance on Capital Management for Banks

    APRA updated its capital management guidance for banks, particularly easing restrictions around paying dividends as institutions continue to manage the disruption caused by COVID-19 pandemic.

    July 29, 2020 WebPage Regulatory News
    News

    FSB Report Reviews Macro-Prudential Framework and Tools in Germany

    FSB published a report that reviews the progress on data collection for macro-prudential analysis and the availability and use of macro-prudential tools in Germany.

    July 29, 2020 WebPage Regulatory News
    News

    EBA Urges Firms to Finalize Preparations for End of Brexit Transition

    EBA issued a statement reminding financial institutions that the transition period between EU and UK will expire on December 31, 2020; this will end the possibility for the UK-based financial institutions to offer financial services to EU customers on a cross-border basis via passporting.

    July 29, 2020 WebPage Regulatory News
    News

    SRB on Operational Continuity in Resolution and FMI Contingency Plans

    SRB published guidance on operational continuity in resolution and financial market infrastructure (FMI) contingency plans.

    July 29, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5604