Branch² Intelligence
UK financial regulators to begin overseeing Critical Third Parties announced by Treasury
Key takeaway
UK regulators (BoE, PRA, FCA) will oversee critical third-party tech suppliers to the financial sector, starting with AWS, Google Cloud, Microsoft, and Oracle.
- Step 1UK Treasury designates AWS, Google Cloud, Microsoft, Oracle as critical third parties; regulators gain oversight powers.
- Step 2Cloud providers invest in compliance, resilience testing, and reporting, increasing their operational costs.
- Step 3Financial institutions benefit from reduced systemic risk but face higher cloud service fees as providers pass on costs.
- Step 4UK SMEs using these cloud platforms experience higher input costs for cloud services, squeezing margins.
Source: FCA News
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