Live coverage of business, economics and financial markets as Somerset Capital says it will wind down after loss of major client
The UK’s big three financial regulators are consulting on new powers to oversee so-called critical third parties because of the potential risks to financial stability.
The Bank of England, its Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) said that managing the risks from third parties was “beyond the ability of any individual firm” or infrastructure provider to solve.
Third-party service providers often play a vital role in the delivery of important services by banks and insurers. These arrangements bring benefits, but also potential risks. We are consulting today on proposals to implement new powers given to us by parliament to manage these risks for those providers who could present risks to financial stability, in an effective and proportionate way.
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