Consultation: Proposed standard condition on business continuity and technology systems

April 2024  

Following consultation, we have decided to introduce a new standard condition relating to business continuity and technology systems. The standard condition will impose new obligations on the following market services licences:  

• managers of registered schemes (other than a restricted scheme);  
• providers of discretionary investment management services;  
• derivatives issuers (in respect of regulated offers);  
• peer-to-peer lending providers; and  
• crowdfunding service providers.  

The condition takes effect on and from Monday 1 July 2024.

Thank you to all submitters for their feedback. 

July 2023 

We are proposing a new business continuity and technology systems standard condition for the following types of market service licences: 

• Managers of registered schemes (but not restricted schemes);  
• Providers of discretionary investment management services; 
• Derivatives issuers; and 

• Prescribed intermediary services (peer-to-peer lending providers and crowdfunding service providers). 

Our view is that the increasing technological risks facing the financial services sector mean it is necessary to ensure holders of these licence types meet minimum business continuity and technology standards.  

This proposal continues our roll-out of this standard condition across licence types, to reflect the importance of ensuring licence holders are able to continuously provide their market services. By doing so, consumers and investors will have the security of continuity of the relevant services and associated products they receive from market services licensees. 

We welcome feedback on the proposed standard condition discussed in this paper. Please use the feedback form to provide comments.