The UK's financial system is set to receive a significant boost in resilience, thanks to the government's latest measure: designating four major global cloud services and technology providers as Critical Third Parties (CTPs). By bringing these key suppliers under direct oversight from the Bank of England, Prudential Regulation Authority (PRA), and Financial Conduct Authority (FCA) from July 2026, policymakers aim to mitigate risks associated with a disruption at a major cloud supplier. Such an event could potentially impact numerous financial firms simultaneously, leading to widespread outages for critical services relied upon by millions of UK citizens and businesses every day.
The designated third parties – Microsoft Ireland Operations Limited, Google Cloud EMEA Limited, Amazon Web Services EMEA SARL, and Oracle Corporation UK Limited – will be subject to rigorous oversight. The UK financial regulators will collaborate to assess their resilience, gather crucial information, and work with the providers to ensure robust arrangements are in place to identify, manage, and recover from operational disruptions affecting critical services. Where necessary, the regulators will also have the power to make and enforce CTP-specific rules.
According to the Economic Secretary to the Treasury and City Minister, Rachel Blake MP, maintaining trust in the UK's financial system is essential for its success as a world-leading financial centre. The designations will ensure the resilience of critical services relied upon by financial firms, thereby protecting consumers and businesses and fostering economic growth.
With a stable and secure financial system deemed fundamental to economic prosperity, this targeted approach forms part of a rolling regime that may see further providers designated over time if necessary to safeguard UK financial resilience. The move follows extensive evidence gathering and collaborative engagement with the third-party providers involved, with both Microsoft and Google Cloud issuing statements affirming their commitment to complying with the new oversight requirements.
The impact on the financial sector is expected to be significant, with reduced risk of widespread outages and greater assurance for those reliant on cloud services. As a result, households and businesses can expect improved resilience in critical services, such as online banking and trading platforms, that are increasingly dependent on these suppliers.