On November 12, the UK finalized its Critical Third Parties (CTP) regime, which expands the financial services regulatory perimeter and requires a principles-based approach for critical third parties. The framework outlines oversight and compliance requirements for CTPs, including operational risk and resilience obligations, incident reporting, and testing. The regulators will identify and recommend potential CTP candidates to HM Treasury and will apply a collaborative approach between regulators and CTPs, emphasizing the importance of systemic services and resilience testing.
Deloitte wrote an informative piece on this which provides key takeaways for third parties, emphasizing the need for clear communication with financial services firms and learning from their experience with operational resilience. The post can be found here for your reference:
