Prudential Regulation Authority publishes PS6/21 and PS7/21

SS 1/21 sets out the PRA's expectations for the operational resilience of firms' important business services, for which they are required to set ... Home News&insight PrudentialRegulationAuthoritypublishesPS6/21andPS7/21 PrudentialRegulationAuthoritypublishesPS6/21andPS7/21 PRA/BankofEngland 09April2021 ThePRAhaspublished2policystatements:  PS6/21Operationalresilience:Impacttolerancesforimportantbusinessservices PS7/21Outsourcingandthirdpartyriskmanagement  PS6/21providesfeedbackonCP29/19Operationalresilience:ImpacttolerancesforimportantbusinessservicesandcontainsthePRA’sfinalpolicy,asfollows: anewOperationalResiliencePartsofthePRARulebook; amendmentstotheGroupSupervisionPartofthePRARulebook; anewSupervisoryStatement(SS)1/21‘Operationalresilience:Impacttolerancesforimportantbusinessservices’;and anewStatementofPolicy(SoP)‘Operationalresilience’.  SS1/21setsoutthePRA'sexpectationsfortheoperationalresilienceoffirms’importantbusinessservices,forwhichtheyarerequiredtosetimpacttolerances.Thepolicyobjectiveistoimprovetheresilienceofbothfirmsandthewiderfinancialsectortooperationaldisruptions. OAC'sinsuranceclientsaredeemedlowriskcategoriesandnotexpectedtoimpactmateriallyonthewiderfinancialsectorandUKeconomy.ThereforeconsiderationsaroundFinancialStabilityarelessimportant.However,considerationwillneedtobegiventoafirm’ssafetyandsoundness,andtheappropriatedegreeofpolicyholderprotection.PS7/21 providesfeedbackCP30/19‘Outsourcingandthirdpartyriskmanagement’andcontainsthePRA’sfinalSupervisoryStatement(SS)2/21‘Outsourcingandthirdpartyriskmanagement’. Thisisintendedtocomplementexpectationsonoperationalresilience.Bothsupervisorystatementsareeffectivefrom31March2022. Formoreinformation CaraSpinks ConsultantActuary 07585506237 [email protected] Wanttofindoutmoreaboutthisexpert?