PS21/3 Building operational resilience | FCA

We've set out our final rules and guidance on new requirements to strengthen operational resilience in the financial services sector. Show PS21/3 (PDF) ... Skiptomaincontent Skiptosearchbox Home Publications PS21/3Buildingoperationalresilience We'vesetoutourfinalrulesandguidanceonnewrequirementstostrengthenoperationalresilienceinthefinancialservicessector. ShowPS21/3 (PDF) Whywearechangingourrules InDecember2019,weconsulted–inCP19/32–onproposedchangestohowfirmsapproachtheiroperationalresilience.WedevelopedtheseproposalsinpartnershipwiththeBankofEngland–initscapacityofsupervisingfinancialmarketinfrastructures(FMIs)–andthePrudentialRegulationAuthority(PRA)toimprovetheoperationalresilienceoftheUKfinancialsector. Wereceived73responses,mostsupportingourproposals.Insomecases,respondentsaskedustoclarifyhowtheruleswouldapply.Inasmallnumberofcases,respondentsopposedourproposalsorsuggestedchangestotheproposedrules.  Togivefirmsmoretimeandflexibilitytomeetmappingandscenariotestingrequirements,wehavemadechangestothepolicyposition.SeeChapters4and5ofthePolicyStatement. Ingeneral,wehaveimplementedourotherproposalsasconsultedon,andhavemadeamendmentstoreflectthefeedbackreceived.WesetoutthefeedbackandourresponsetoitinthePolicyStatement.  Whothisappliesto Thisaffects: banks buildingsocieties PRA-designatedinvestmentfirms insurers RecognisedInvestmentExchanges enhancedscopeSM&CRfirms entitiesauthorisedandregisteredunderthePaymentServicesRegulations2017orElectronicMoneyRegulations2011 ThisdoesnotapplytoEEAfirms. Backgroundtotheoperationalresilienceconsultation  EnsuringtheUKfinancialsectorisoperationallyresilientisimportantforconsumers,firmsandfinancialmarkets.Operationaldisruptionscancausewide-reachingharmtoconsumersandposearisktomarketintegrity,threatentheviabilityoffirmsandcauseinstabilityinthefinancialsystem.Thedisruptioncausedbycoronavirus(Covid-19)hasshownwhyitiscriticallyimportantforfirmstounderstandtheservicestheyprovideandinvestintheirresilience.  WiththeBankandPRA,wehavepublishedasharedfinalpolicysummary ontheserequirementstostrengthenoperationalresilienceinthefinancialservicessector. Nextsteps Ourrulesandguidancecameintoforceon31March2022. Assoonaspossibleafter31March2022,andbynolaterthan31March2025,firmsmusthaveperformedmappingandtestingsothattheyareabletoremainwithinimpacttolerancesforeachimportantbusinessservice.Firmsmustalsohavemadethenecessaryinvestmentstoenablethemtooperateconsistentlywithintheirimpacttolerances.  By31March2022,firmsmusthaveidentifiedtheirimportantbusinessservices,setimpacttolerancesforthemaximumtolerabledisruptionandcarriedoutmappingandtestingtoa levelofsophisticationnecessarytodoso.Firmsmustalsohaveidentifiedanyvulnerabilitiesintheiroperationalresilience. Pageupdates 31/03/2022:InformationchangedToreflectthatourrulesandguidancecameintoforceon31March2022 24/01/2022:InformationaddedOperationalresiliencewebinar 25/06/2020:InformationaddedJune2020update17/03/2020:InformationchangedConsultationclosingdateextended Wasthispagehelpful? radios Yes No Whatcanwedotoimprovepageslikethis? Whatdidyoufindhelpful? SubmitFeedback Leavethisfieldblank PrintPage Linkedin Twitter Sharepage Moreinformation CP19/32:Buildingoperationalresilience Externalresources Webinar:Operationalresilience Sharedpolicysummary–consultation(bankofengland.co.uk) Discussionpaper:DP18/4(bankofengland.co.uk) Requestanalternativeformat Pleasecompletethisformifyourequirethiscontentinanalternativeformat.