DP3/22 – Operational resilience: Critical third parties to the UK financial sector

The paper outlines potential measures to manage the systemic risks posed by certain third parties to the UK financial sector. These third parties, referred to as ‘critical third parties’ (CTPs), could be designated as such by HM Treasury (HMT) under proposed changes to UK legislation.

“The supervisory authorities hold firms and FMIs responsible, and ultimately accountable, for their operational resilience, regardless of whether or not they rely upon third parties to support the delivery of their important business services. But no single firm or FMI can adequately monitor or manage the systemic risks that certain third parties pose to the supervisory authorities’ objectives.”