● Covered by 2 sources · 2 reportsMedium impact
AWS & Google Cloud Designated as Critical Third Parties to UK's Financial Sector
Key points
- AWS and Google Cloud named critical third parties in the UK.
- Designation effective from January 1, 2025.
- Oversight by Bank of England, PRA, and FCA.
- Aim to boost UK financial sector resilience.
- AWS and Google Cloud are working towards compliance.
Overview
Amazon Web Services (AWS) and Google Cloud have been designated as critical third parties (CTPs) to the UK's financial sector by HM Treasury. This was formally enacted under the CTP regime which becomes effective on January 1, 2025.
Regulatory Framework
The CTP regime permits UK financial regulators, including the Bank of England, the Prudential Regulation Authority (PRA), and the Financial Conduct Authority (FCA), to set requirements and have direct oversight over AWS and Google Cloud. These companies are critical to the financial ecosystem due to their widespread service usage.
Operational Resilience
This designation focuses on enhancing operational resilience within the financial sector. With major tech providers like AWS and Google Cloud under regulation, the sector is better equipped to safeguard against systemic risks associated with cloud computing dependencies.
Commitment to Compliance
Both AWS and Google Cloud have committed to working with UK authorities to meet their obligations. This includes self-assessment and alignment with the regulatory framework set by the CTP regime to ensure compliance and support for financial system stability.
Impact and Implications
By enhancing oversight of critical third parties, the UK aims to bolster the operational resilience of its financial sector, a crucial move given the prevalent use of cloud services in banking and finance.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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How outlets covered it
Google Cloud EMEA has been designated as a critical third party under the U.K. Treasury's CTP regime. This designation enables oversight by the Bank of England and other regulators, aiming to enhance operational resilience in the financial sector.
Amazon Web Services has been designated as a critical third party to the UK's financial sector by HM Treasury. This designation, effective January 1, 2025, enables UK regulators to oversee AWS and enforce operational resilience requirements for financial firms using its services.