First published on 12 November 2024
This Supervisory statement (SS):
- is issued jointly by the Prudential Regulation Authority (PRA), the Financial Conduct Authority (FCA), and the Bank of England (collectively ‘the regulators’); and
- sets out the regulators’ expectations of how a critical third party (CTP) should comply with the duties and obligations placed on it by or under the Financial Services and Markets Act 2000 (FSMA) as amended by the Financial Services and Markets Act 2023 (FSMA 2023), including the requirements in the regulators’ rules (collectively referred to as the ‘CTP duties’).
The Overall Objective of the oversight regime for CTPs is to manage risks to the stability of, or confidence in, the UK financial system that may arise due to a failure in, or disruption to, the services that a CTP provides to regulated firms and FMIs.
A CTP should interpret its CTP duties and the accompanying expectations in this SS in light of the Overall Objective.