The Prudential Regulation Authority (PRA) is inviting comments on its proposals to modernize the regulatory framework on outsourcing and third-party risk management.
The proposals are outlined in the draft Supervisory Statement on Outsourcing and third-party risk management. The objectives include complementing the policy proposals on operational resilience in CP29/19 ‘Operational resilience: impact tolerances for important business services.’
They are also aimed at: i) facilitating greater resilience and adoption of the cloud and other new technologies; and ii) implementing the European Banking Authority’s ‘Guidelines on Outsourcing Arrangements.’
The proposals impact all UK banks, building societies and PRA-designated investment firms, insurance and reinsurance firms, branches of overseas banks and insurers. Stakeholders are required to provide comments by April 3, 2020.
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