| Link(s): | CP24/3: Quarterly Consultation Paper No. 43 | FCA CP24/3: Quarterly Consultation Paper No. 43 (fca.org.uk) |
Context
The Financial Services and Markets Act 2023 (FSMA 2023) created a new regime for the oversight of critical third parties (CTPs), including new enforcement powers for the FCA, Prudential Regulation Authority (PRA) and Bank of England (Bank).
Key points to note and next actions
The main consultations for the CTP regime (CP26/23 and CP23/30), published on 7 December 2023, did not deal with enforcement provisions. This consultation therefore deals with relevant enforcement provisions and sits alongside CP26/23 and CP23/30. Under the new regime, the FCA will have powers to take enforcement action where it considers that a CTP has contravened applicable regulatory requirements. These proposals only apply to the FCA. The PRA and Bank are both expected to consult on their own enforcement proposals in due course.