EU and UK regulators sign MoU for DORA oversight of critical ICT providers.

The European Supervisory Authorities (ESAs) and UK financial regulators, including the Bank of England, PRA, and FCA, have signed a Memorandum of Understanding (MoU). This agreement strengthens cooperation between these authorities. Its purpose is to oversee critical ICT third-party service providers (CTPPs), as mandated by the Digital Operational Resilience Act (DORA). This initiative aims to bolster digital finance and international cooperation. The MoU outlines clear principles and procedures for cooperation. It facilitates information sharing and coordination of oversight activities. This applies to relevant authorities responsible for EU CTPPs and UK CTPs oversight. The agreement seeks to improve third-party risk management. It also contributes to the overall operational resilience of the financial sector in both the EU and the UK. This is achieved through robust cross-border cooperation. The legal basis for this MoU stems from DORA Articles 36, 44, and 49. These articles specifically address the ESAs’ oversight powers. They also cover international cooperation, financial cross-sector exercises, communication, and broader cooperation. This ensures the agreement aligns with established regulatory frameworks. Before exchanging information with a third-country authority, the ESAs must verify. They need to ensure the confidentiality and professional secrecy regime in that country is equivalent to the EU's. Consequently, prior to signing this MoU, the ESAs performed an assessment. This confirmed the UK's confidentiality and professional secrecy regime is equivalent to DORA's requirements.