In these Consultation Papers (CPs), the Bank of England (Bank) sets out and invites comments on its proposals around outsourcing and third party risk management in FMIs. These proposals are set out in three draft supervisory statements for central counterparties (CCPs), central securities depositaries (CSDs) and recognised payment system operators (RPSOs) & specified service providers (SSPs). They aim to:
• facilitate greater resilience and adoption of the cloud and other new technologies as set out in the Bank of England’s response to the Future of Finance (FoF) report;
• set out the Bank’s requirements and expectations in relation to outsourcing and third party risk management in FMIs; and
• complement the Bank’s Supervisory Statements on FMI operational resilience.
The Bank is proposing to develop an outsourcing and third party risk management part to add to the Code of Practice that will apply to relevant RPSOs and SSPs.
The Bank has published:
• individual CPs and draft supervisory statements consulting on the Bank’s outsourcing and third party risk management expectations for CCPs and CSDs
• a CP, draft supervisory statement and draft outsourcing and third party risk management chapter of the Code of Practice for recognised payment system operators and specified service providers.
Responses and next steps
This consultation closes on 14 July 2022. The Bank invites feedback on the proposals set out in this consultation. Please address any comments or enquiries to FMIFeedback@bankofengland.co.uk.