The UK government has introduced a new regulatory framework by designating four major cloud and technology providers as Critical Third Parties (CTPs). Microsoft, Google Cloud, Amazon Web Services, and Oracle will now be subject to direct oversight by the Bank of England, the Prudential Regulation Authority, and the Financial Conduct Authority. The new framework reflects the growing reliance of banks, insurers, and financial institutions on cloud infrastructure and aims to strengthen the operational resilience of the UK’s financial system.
The designation reinforces the increasing importance of third-party risk management and vendor due diligence within regulated industries. Financial institutions remain responsible for managing risks associated with critical service providers, making ongoing vendor assessments, operational resilience planning, and compliance monitoring essential components of a modern governance program. As regulatory expectations continue to evolve, organizations should regularly review third-party relationships to identify potential operational and compliance risks before they affect business continuity.
Original Source
UK Financial System Strengthened with New Safeguards for Major Technology Providers (GOV.UK)
