Written statement: Critical Third Parties Regime - July 9

Economic Secretary (Rachel Blake): The Financial Services and Markets Act 2023 amended the Financial Services and Markets Act 2000 to establish a new framework enabling the oversight of those third parties whose services are critical to the stability of the UK financial sector. This framework forms an important part of the Government's wider programme to promote a resilient, stable and internationally competitive financial services sector.

The designation of a third party will enable the financial regulators (jointly the Bank of England, Prudential Regulation Authority and Financial Conduct Authority) to apply proportionate and targeted oversight of the systemically critical services, focused on managing risks to UK financial stability.

Regulations have been made under section 312L of the Financial Services and Markets Act 2000 to designate specific third party entities as critical third parties where this is necessary to manage systemic risks arising from these services they provide to the UK financial sector.

These Regulations will come into force on 13 July 2026 and form part of a rolling programme of designations with further designations expected in the future as part of the ongoing regime and as risks to the operational resilience of the UK financial sector evolve.