18 Critical third parties: designation and powers
Financial Services and Markets Act 2023 (2023 c 29) | Legislation

Powers in relation to critical third parties

18  Critical third parties: designation and powers

(1)     FSMA 2000 is amended as follows.

(2)     In the heading to Part 18, for “and CSDs” substitute “, CSDs and other parties”.

(3)     After section 312K (statement of policy: procedure) insert—

“Chapter 3C
Critical Third Parties
312L Critical third parties

(1)     The Treasury may by regulations designate a person who provides services to one or more authorised persons, relevant service providers or FMI entities as a “critical third party”.

(2)     The Treasury may designate a person under subsection (1) only if in the Treasury's opinion a failure in, or disruption to, the provision of those services (either individually or, where more than one service is provided, taken together) could threaten the stability of, or confidence in, the UK financial system.

(3)     The Treasury must have regard to the following factors when forming an opinion for the purposes of subsection (2)—

(a)     the materiality of the services provided to the delivery, by any person, of essential activities, services or operations (wherever carried out);

(b)     the number and type of authorised persons, relevant service providers or FMI entities to which the person provides services.

(4)     Before making

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