Regulators set out final rules for critical third parties to the UK financial sector

The Bank of England, PRA and FCA issued the final rules for the critical third parties (CTPs) regime on 12 November 2024. This new regime aims to reduce systemic concentration risks to the stability of the UK financial system by bringing systemic third party providers into the scope of the regulators’ supervisory oversight.

CTPs will be designated by HM Treasury on the basis of the regulators’ recommendations if they provide ‘systemic third party services’: those services provided to regulated financial services firms that, if disrupted, could threaten the stability of, or confidence in, the financial system.

The final rules are largely aligned with those proposed in CP 26/23. However, the regulators have made changes to clarify, amend or moderate certain requirements and expectations.

Download this Hot Topic to read our detailed analysis of the regulators’ final rules, and what the rules mean for third parties and financial services firms.