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City of London

UK Wants to Regulate Tech Firms Deemed ‘Critical’ to Finance

  • Proposal for regulators to directly oversee some units
  • Growing concern about finance’s shift to cloud computing
The Bank of England said it wanted additional powers to police the finance industry’s switch to cloud computing.

The Bank of England said it wanted additional powers to police the finance industry’s switch to cloud computing.

Photographer: Jason Alden/Bloomberg

The UK wants its financial watchdogs to directly oversee tech firms that provide critical services to the industry as regulators increasingly fret about the growing dependence of banks on cloud computing.

The UK Treasury is proposing designating certain non-finance firms as “critical” to the operating of the industry, according to a policy statement Wednesday. Regulators will be able to make rules relating to the provision of these material services, gather relevant information from those firms, and take formal action including enforcement.