The Bank of England has partnered with HM Treasury and the Financial Conduct Authority to undertake a two-day simulation exercise.
The exercise – SIMEX 22 – has been set out to test the UK financial sector’s resilence to major operational disruption.
SIMEX22 involved 50 regulated firms as well as the financial authorities. SIMEX22 will help both the financial authorities and firms identify improvements to the collective response capabilities, improving the resilience of the financial sector as a whole, and promoting a stable financial system that the public can depend on.
The exercise has been developed by the Cross Market Operational Resilience Group (CMORG), a joint initiative between the financial authorities, UK Finance and industry. The initiative aims to improve the resilience of the UK financial sector through collective action. CMORG achieves this through the identification and creation of guidance and resilience capabilities that address potential systemic risks in the sector.
CMORG will consider the findings and ensure that collective capabilities are developed to mitigate any risks that are identified.
PRA CEO and deputy governor Sam Woods said, “It is important to prepare our response to any widespread incident. The financial authorities and industry working together to rehearse our response is a vital part of this.”
The Bank of England’s Financial Policy Committee recently called for enhanced regulation of the crypto asset market.
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