HM Treasury confirms approach to critical third party service providers

HM Treasury (HMT) published a policy statement on 8 June 2022, confirming how it proposes to mitigate risks from critical third party providers of services to the finance sector (e.g. Cloud Service Providers).

Under its new regime, HMT will be able to designate certain third party service providers as ‘critical’, after consultation with the relevant financial regulator and other bodies. The relevant financial regulator will then be able to take appropriate action, in situations where the services provided by designated ‘critical’ third parties are of particular relevance to the regulators’ objectives.

Download this At a glance to see a detailed analysis of the policy, and what it means for firms.