European financial regulators and their counterparts in the United Kingdom have taken a significant step towards strengthening the resilience of the financial system by signing a new memorandum of understanding aimed at improving oversight of critical technology service providers.
The agreement brings together the European Supervisory Authorities, the European Banking Authority, the European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority with key UK institutions including the Bank of England, the Prudential Regulation Authority and the Financial Conduct Authority. At its core, the deal is designed to improve how regulators on both sides of the Channel supervise major information and communications technology providers that support banks, insurers and financial markets.
For diaspora communities working in finance, technology and cross-border business, the move reflects how closely intertwined the UK and EU financial systems remain despite Brexit. Many professionals, firms and consumers rely daily on digital platforms, cloud services and outsourced technology that operate seamlessly across borders. Strengthening oversight of these providers is increasingly seen as essential to protecting savings, pensions and financial stability.
The memorandum specifically supports the implementation of the EU’s Digital Operational Resilience Act, known as DORA, which sets out how regulators should monitor and manage risks linked to third-party technology providers. Under DORA, authorities are required to ensure that critical ICT firms meet high standards of security, reliability and resilience, given their growing role in the financial sector.
The agreement sets out clear principles for cooperation, information sharing and coordination between EU and UK authorities responsible for supervising critical third-party providers. By formalising how regulators work together, the MoU aims to prevent gaps in oversight that could be exploited by cyber threats, system failures or operational weaknesses.
Officials say the arrangement will enhance third-party risk management and strengthen the overall operational resilience of the financial sector in both the European Union and the United Kingdom. This is particularly important at a time when cyber attacks, data breaches and technology outages can have immediate and widespread consequences for customers and markets alike.
The legal framework for the agreement is grounded in Articles 36, 44 and 49 of DORA, which outline regulatory oversight powers, international cooperation and cross-sector coordination. These provisions also address how authorities should communicate and cooperate beyond EU borders, including with countries such as the UK.
Before signing the memorandum, European regulators carried out a detailed assessment of the UK’s confidentiality and professional secrecy rules. Under EU law, information can only be shared with third-country authorities if their confidentiality regime is considered equivalent to that of the European Union. The assessment confirmed that the UK’s safeguards meet the standards required under DORA, clearing the way for formal cooperation.
In a joint statement, the authorities said the memorandum establishes clear procedures for collaboration and information exchange between EU and UK supervisors overseeing critical ICT providers. They added that the agreement is intended to boost resilience across the financial system through strong cross-border cooperation.
For readers across the African, Caribbean and wider global diaspora, the development underscores how regulatory decisions in Europe and the UK can have global ripple effects. From international remittances and digital banking to fintech innovation and employment in the financial sector, stronger cooperation on technology risks helps build trust in systems that millions depend on every day.
As financial services become increasingly digital and interconnected, regulators on both sides of the Channel appear determined to work together to ensure that innovation does not come at the cost of stability or security.
