Prudential Authority (PA) published dir 10/2021 on Dec. 14, 2021, stating that banks must comply with the respective requirements envisaged in the directive within 18 months of the publication date, which effectively translated to Jun. 30, 2023.
Based on developments in local and international regulatory environment as well as the need for alignment on implementation timelines with other jurisdictions, deemed it necessary to extend the previously determined date for compliance.
Proposed directive replaces dir 10/2021; all banks must comply with the respective requirements specified in this proposed directive on or before Dec. 31, 2024.
Compliance Principles
Banks must assess adequacy and robustness of current policies, processes and practices against Basel principles for operational resilience.
Operational resilience controls must follow a risk- based approach that aligned with the bank's risk appetite, based on the nature, size and complexity of its operations.
Banks must ensure that all Basel principles are addressed either through internal resources or by means of outsourcing / third party agreements without undue delay.
Existing risk management frameworks, business continuity plans and third-party dependency management must be implemented consistently within the bank.
Banks must consider whether operational resilience approach is appropriately harmonized with stated actions, organizational mappings, and definitions of critical functions and critical shared services contained in its recovery and resolution plans.
Effectiveness
Comments on extended date of directive must be submitted by Apr. 19, 2023.
Jun. 2023 Directive Issued
On Jun. 2, 2023, RSA CB issued Directive D4/2023 on operational resilience principles.
Dir D4/2023 replaces dir 10/2021, published Dec. 14, 2021.
All banks must comply with directive requirements on or before Dec. 31, 2024.
