Prudential Regulation Authority Rulebook

3.1

A firm must:

1. (1) identify and document the details of the critical services it receives and details of the critical services required to deliver each of its critical functions and core business lines; and
2. (2) be able to demonstrate it can put in place transition arrangements for the continuity of the critical services in receives in the event of the firm being restructured or resolved.

3.2

Subject to 3.2A, if a firm receives critical services from another party, it must ensure the agreement governing the provision of these services:

1. (1) does not permit the other party to terminate, suspend or materially alter the services or facilities or the agreement as a result of the deterioration in the financial circumstances or the resolution of the firm or any of its group members; and
2. (2) entitles the firm to continue to receive those services during the firm’s resolution or restructuring as long as the firm fulfils its payment obligations under the agreement.

3.2A

3.2 does not apply in respect of an excluded agreement or an agreement entered into by a firm with an excluded person.

3.3

If a firm receives critical services from another party, it must ensure that the agreement governing the provision of those critical services is set on arm’s length terms.

3.3A

A firm must ensure that the charging structure for the critical services it receives is predictable and transparent.

3.4

A firm must ensure access by the firm, the service provider and the PRA to the operational assets supporting critical services is not disrupted in the event of a group member being restructured or resolved.