Regulatory Wrap Episode 30: The FCA’s Operational Resilience Insights

In Regulatory Wrap for the week to May 31, Jennie Clarke discusses the theme of operational resilience, specifically reviewing the focal points the FCA highlighted in its operational resilience insights.

03 June 2024 2 mins read
Profile picture of Kathryn Fallah By Kathryn Fallah

In Regulatory Wrap for the week to May 31, 2024:

In this Regulatory Wrap, we explore the findings released by the Financial Conduct Authority (FCA) analyzing how well firms are preparing for its final rules, which are coming into effect in less than a year.

Highlights:

1. Within its observations, the FCA pointed out valuable findings that firms can review to assess their own approaches

2. The FCA noted that some firms are not identifying important business services on the principle of “sustainability,” meaning that were an outage to occur, their competitors could take over in servicing client needs

3. Beyond regarding only response and recovery as identifying factors, firms should weigh all considerations when deliberating business services, such as those laid out in the FCA Handbook

4. Firms should understand any third-party vulnerabilities and expand scenario testing to account for these external providers

5. Though firms are setting impact tolerances, they need to be able to explain the reason why tolerances are set

This Regulatory Wrap is brought to you by Global Relay’s Head of Content, Jennifer Clarke.

With various regulators releasing rules and adding to the discussion on operation resilience, firms need to ensure they’ve measured and devised their operation resilience.