We, the Prudential Regulation Authority (PRA), the Bank of England (the Bank), and the Financial Conduct Authority (FCA) (collectively ‘the regulators’) are the authorities responsible for regulating and overseeing critical third parties (CTPs) to the UK financial sector.
This document acts as a standing reference, setting out how the regulators intend to use the oversight powers granted to us by legislation in respect of CTPs, in accordance with and in advancement of our respective statutory objectives.
The regulators aim to promote regulatory accountability and transparency by communicating what CTPs may expect during the course of oversight; in particular recognising that they may not have been previously regulated. The document aims to help the wider market understand the regulators’ oversight approach and to aid accountability to the public and Parliament. The document highlights the outcomes-focused and proportionate nature of the regime, not just in the rules and expectations for CTPs, but also in the regulators’ approach to oversight.
Approach to the oversight of critical third parties