Financial Services

Treasury written question – answered on 16th March 2020.

Alert me about debates like this

Photo of Lord Myners Lord Myners Crossbench

To ask Her Majesty's Government what assessment they have made of (1) any risk to the stability of the financial system from the potential failure of large portfolio risk management systems, and (2) the level of competition between providers of such systems to banks, insurers and fund managers.

Photo of Lord Agnew of Oulton Lord Agnew of Oulton Minister of State (HM Treasury), Minister of State (Cabinet Office)

HM Treasury works closely with the Bank of England, the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) (collectively the ‘Financial Authorities’) to ensure that the financial system is robust to a wide range of operational risks.

Responsibility for the UK finance sector’s networks and systems is primarily for the firms themselves, and we expect firms to assess and manage the risks arising from the use of systems provided by a third party.

We continue to work closely with the other Financial Authorities and industry to assess third-party risks in the sector. In December 2019, the Bank of England published a Consultation Paper which outlined updated policy proposals regarding outsourcing and third-party risk management.

Does this answer the above question?

Yes1 person thinks so

No0 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.