UK Regulators Reach Agreement to Collaborate with EU on Key Technology Providers
The recent memorandum of understanding is set to enhance cross-border oversight of cloud service providers and other technology firms. This initiative aims to mitigate risks to the financial sector arising from cyberattacks and web outages, which have become increasingly prevalent in today’s digital landscape.
In November, the European Union identified 19 technology firms as critical to the financial sector. This list includes major cloud service providers such as Amazon Web Services, Google Cloud, and Microsoft Azure, alongside other significant players like IBM, the London Stock Exchange Group, and Tata Consultancy Services. The designation underscores the importance of these firms in maintaining the stability and security of financial operations across Europe.
The newly established rules empower regulators to scrutinize whether these companies possess adequate risk management and governance frameworks. This examination is crucial to ensure that the services provided by these tech giants remain resilient against potential disruptions, thereby safeguarding the financial sector from unforeseen challenges.
On Wednesday, this announcement coincided with a visit to Brussels by UK Financial Services Minister Lucy Rigby. During her visit, she is scheduled to meet with European Commissioner for Financial Services Maria Luis Albuquerque. The primary agenda of this meeting is to advocate for closer cooperation between the EU and the UK in the realm of financial services.
Recent media reports have presented conflicting narratives regarding the strengthening of ties between Britain and the European Union. These reports reflect the ongoing divisions within the UK following its decision to leave the bloc in 2016. While financial services are not included in the 2025 UK-EU reset deal, Rigby and the Commissioner are expected to discuss potential areas of collaboration that would benefit both economies.
It is noteworthy that equivalent regulations in the UK came into effect at the beginning of last year. However, the UK finance ministry has yet to designate any specific provider as critical. Despite this delay, a source familiar with the Bank of England’s (BoE) perspective indicated that the cooperation agreement with the EU could still be implemented. This agreement is intended to function independently of whether the firms are operating within the UK.
Rigby has previously indicated that tech firms will be integrated into the UK regulatory framework later this year, signaling a commitment to aligning with international standards and enhancing the resilience of the financial sector.
(Reporting by Muvija M, writing by Sarah Young; editing by David Milliken and Barbara Lewis)
The recent memorandum of understanding is set to enhance cross-border oversight of cloud service providers and other technology firms. This initiative aims to mitigate risks to the financial sector arising from cyberattacks and web outages, which have become increasingly prevalent in today’s digital landscape.
In November, the European Union identified 19 technology firms as critical to the financial sector. This list includes major cloud service providers such as Amazon Web Services, Google Cloud, and Microsoft Azure, alongside other significant players like IBM, the London Stock Exchange Group, and Tata Consultancy Services. The designation underscores the importance of these firms in maintaining the stability and security of financial operations across Europe.
The newly established rules empower regulators to scrutinize whether these companies possess adequate risk management and governance frameworks. This examination is crucial to ensure that the services provided by these tech giants remain resilient against potential disruptions, thereby safeguarding the financial sector from unforeseen challenges.
On Wednesday, this announcement coincided with a visit to Brussels by UK Financial Services Minister Lucy Rigby. During her visit, she is scheduled to meet with European Commissioner for Financial Services Maria Luis Albuquerque. The primary agenda of this meeting is to advocate for closer cooperation between the EU and the UK in the realm of financial services.
Recent media reports have presented conflicting narratives regarding the strengthening of ties between Britain and the European Union. These reports reflect the ongoing divisions within the UK following its decision to leave the bloc in 2016. While financial services are not included in the 2025 UK-EU reset deal, Rigby and the Commissioner are expected to discuss potential areas of collaboration that would benefit both economies.
It is noteworthy that equivalent regulations in the UK came into effect at the beginning of last year. However, the UK finance ministry has yet to designate any specific provider as critical. Despite this delay, a source familiar with the Bank of England’s (BoE) perspective indicated that the cooperation agreement with the EU could still be implemented. This agreement is intended to function independently of whether the firms are operating within the UK.
Rigby has previously indicated that tech firms will be integrated into the UK regulatory framework later this year, signaling a commitment to aligning with international standards and enhancing the resilience of the financial sector.
(Reporting by Muvija M, writing by Sarah Young; editing by David Milliken and Barbara Lewis)
