On 21 July 2022, HM Treasury, with the Bank of England, the Financial Conduct Authority (“FCA”) and the Prudential Regulation Authority (“PRA”), issued a discussion paper (the “Paper”), setting out its proposal for mitigating risks of systemic disruption and strengthening of critical third party (“CTP”) services in the UK financial sector. The Paper also sets out the statutory framework for overseeing the operational resilience of CTP providers and how supervisory authorities could use their proposed powers in the Financial Services and Markets Bill 2022-23, which includes the relevant proposed statutory measures. This followed the release of a Policy Statement issued by HM Treasury, which proposes a framework to oversee CTPs, including increased financial stability and market confidence…


When the legislation is introduced, the regulators’ joint discussion paper will be published. Furthermore, the financial regulators will publish a Consultation Paper on their proposed rules as set out in the discussion paper.

If you are a firm that outsources to CTPs, you may have to make changes to your contracts with them once the new framework is established. We will be tracking this new piece of legislation closely so follow us on Linkedin to receive the latest updates.

For more information, guidance, or advice on the UK regulator’s proposal framework for CTPs or for support with updating or negotiating your contracts with critical third parties, Cleveland & Co External in-house counsel™, your specialist outsourced legal team, are here to help.

Please click here to follow us on LinkedIn to receive the latest information on this and other important topics!