Insights ¦ Building operational resilience: Feedback to CP19/32 and final rules

Published by: Financial Conduct Authority
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Key Take Aways

The FCA’s final rules build upon proposed frameworks to enhance operational resilience across the UK financial sector, focusing on important business services and impact tolerances.

Firms are required to identify their important business services, with an emphasis on services that could cause intolerable harm or threaten market stability if disrupted.

The policy applies to a broad range of firms, including banks, investment firms, insurers, RIEs, and certain authorised payment and electronic money institutions, but explicitly excludes overseas firms outside the UK jurisdiction.

Firms must set impact tolerances for each important business service, reflecting the maximum disruption they can tolerate before harm becomes intolerable.

Impact tolerances are to be determined based on severity of harm, duration of disruption, and other metrics, with the mandated metric of time/duration.

The ru...

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