Prudential Regulation Authority Rulebook

6.1

Operational Continuity 3.2 sets requirements relating to agreements governing the provision of critical services. Where there are agreements or contracts between two entities, it is expected that the steps to achieve this could include, but are not necessarily limited to:

• clauses in agreements or contracts for critical services provided by intra-group or non-group providers that allow for continued provision and use of services in stress and resolution. Contracts or agreements should remain valid and enforceable before and after the firm or a group member has entered stress or resolution, provided there is no default on payment obligations (this does not apply if the contract ends due to an upcoming maturity date); and
• clauses in agreements or contracts that allow for the continued use of such products or receipt of such services by entities for a reasonable period of time following their disposal by a group, in order to support restructuring. These clauses should support a firm in designing and implementing TSAs (see Chapter 5).

6.2

The steps outlined in paragraph 6.1 are not exhaustive. The PRA expects firms to consider what additional steps they may need to take to comply with Operational Continuity 3.2.

6.3

The PRA does not expect firms to apply the expectations set out in paragraphs 6.1 and 6.2 to excluded agreements or agreements with an excluded person, as defined in Operational Continuity 1.5. To be an excluded agreement, an agreement must satisfy each of the three conditions of an excluded agreement as defined in Operational Continuity 1.5.