What's Happening?
British financial regulators, including the Bank of England, have signed an agreement with European counterparts to enhance oversight of tech providers critical to the financial services sector. This memorandum
of understanding aims to improve cross-border oversight of cloud services and other tech firms, reducing risks from cyberattacks and web outages. The agreement follows the EU's designation of 19 tech firms as critical, including major cloud providers like Amazon Web Services and Google Cloud. The UK finance ministry is also seeking closer cooperation with the EU on financial services.
Why It's Important?
This agreement marks a significant step in ensuring the resilience of the financial sector against technological disruptions. By coordinating oversight, the UK and EU aim to mitigate risks associated with the increasing reliance on tech providers. This cooperation is crucial for maintaining financial stability and protecting against cyber threats. The move also reflects ongoing efforts to strengthen UK-EU relations post-Brexit, particularly in areas where mutual economic interests align.
