Britain plans to subject cloud service providers to direct regulatory oversight.
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LONDON, July 10 (Reuters) - Britain has classified cloud service providers Microsoft, Google, Amazon and Oracle as vital third parties supplying its financial sector, placing them under direct regulatory oversight.
The move aims to enhance the resilience of financial institutions by reducing the risk of widespread disruptions caused by cyberattacks or technical service outages.
"With banks, insurance companies and financial market infrastructure increasingly reliant on cloud services, any disruption to service from a major provider could affect a number of companies simultaneously, which in turn could affect the services that customers depend on," the government said in a statement today.
The government has designated Microsoft Ireland Operations Limited, Google Cloud EMEA Limited, Amazon Web Services EMEA S.A.R.L. and Oracle Corporation UK Limited as critical third parties effective July 13.
These companies will be subject to joint supervision by the Bank of England, the Prudential Regulation Authority, and the Financial Conduct Authority. They will be required to undergo stress tests, conduct regular self-assessments, and report major incidents.