Lyndon Nelson, Deputy CEO & Executive Director, Regulatory Operations and Supervisory Risk Specialists at the BoE, delivered a speech at the UK Finance Operational Resilience Webinar on recent policy on operational resilience and the merits of outcome-based regulation of operational resilience. Key highlights include:
- the UK’s policy approach to operational resilience is principle and outcome based and it the first policy to have been created in coordination with the four main UK financial regulators in this space: the Financial Policy Committee, the FCA, the BoE and the PRA
- outcome or principles-based regulation works with the market and allows firms to find the most economic, efficient and effective way to meet requirements
- Mr Nelson feels confident that the UK’s approach will deliver the Basel principles on operational resilience for the UK
- the requirement for all firms to have set impact tolerances with regard to financial stability has been removed – for now, only the largest firms will be asked to do this.