On December 5, 2019, U.K. supervisory authorities proposed new rules and expectations aimed at strengthening the operational resilience of the financial services sector. The latest proposals represent the most significant effort to date by any financial regulator to create formal rules around the topic of operational resilience and bring the policy intentions first discussed in the authorities’ July 2018 discussion paper much closer to implementation.

This article describes the scope of finance firms’ compliance obligations with operational resilience and provides additional clarity on several key concepts essential to building operational resilience.