Finance
Tech Giants Face More BOE Scrutiny Under Supplier Risk Rules
- Regulations to give watchdogs greater power starting Jan. 1
- Critical third parties need to co-operate during incidents
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Major technology companies working with UK finance firms will face closer scrutiny, regulators said on Tuesday, as they set out long-awaited new rules to tackle potential risks posed by critical third-party suppliers.
Under regulations coming into force starting Jan. 1, watchdogs will have greater power to take action against some service providers if they see a risk to the financial system. The Financial Conduct Authority and Prudential Regulation Authority could ask tech companies to organize so-called section 166 reports, to collect information from inside a firm — similar to the reviews they already get from the finance industry.