On Mar. 31, 2022, UK FCA updated the webpage to reflect the changes linked to the policy coming into force on that day, to ensure the information reflected that position.
UK FCA expects all in-scope firms to address remaining gaps or shortcomings in their operational resilience frameworks, and meet all of their obligations by Mar. 31, 2025.
On Apr. 28, 2022, UK PRA updated on resilience supervisory roadmap, see #137330.
On Mar. 24, UK FCA issued guidance on resilience for insurance firms.
UK FCA issued guidance to help insurance firms review their approach to rules for strengthening operational resilience, consider what actions they still need to take.
UK FCA updated operational resilience requirements come into force on Mar. 31, 2022.
By that date in-scope firms must have identified their important business services, set impact tolerances for disruption, carried out mapping/testing, identified vulnerabilities.
Regulator asked a sample of firms about the rules, issued observations based on this.
FCA encourages firms to review its observations, consider how their preparations align with them, all in-scope firms must meet obligations under FCA rules by Mar. 31, 2025.
Research
FCA requested information on a voluntary basis from sample of 47 insurers and intermediaries to assess response to final operational resilience rules and guidance.
The sample analyzed included firms from wholesale, retail and life insurance sectors.
Considered reasonableness of the important business services and impact tolerances selected, consideration of consumer harm differentiated by product type/distribution channel, consideration of consumer harm according to customer type or vulnerability.
Key Observations
Some firms demonstrated clear understanding of the rules, but areas for improvement included; firms not demonstrating understanding of rules or not yet applied them fully.
Did not identify important business services or included internal or irrelevant services.
Did not consider consumer harm from being unable to purchase, amend or renew products; did not consider impact of unavailable services on vulnerable customers.
Appropriately identified high levels of consumer harm, but set comparatively lenient impact tolerances; selected extremely short or extremely long impact tolerances.
Misunderstood definition of internal services or included them as important services.
Mar. 31, 2022 Update
On Mar. 31, 2022, UK FCA updated the webpage to reflect the changes linked to the policy coming into force on that day, to ensure the information reflected that position.
UK FCA expects all in-scope firms to address remaining gaps or shortcomings in their operational resilience frameworks, and meet all of their obligations by Mar. 31, 2025.
On Apr. 28, 2022, UK PRA updated on resilience supervisory roadmap, see #137330.
