Bank of England gains powers to regulate tech giants

The Bank of England has been handed powers to regulate important tech firms including Amazon and Google from next week, amid fears that system failures could threaten financial stability and harm consumers. From Monday, the Bank and fellow City regulator the Financial Conduct Authority (FCA) will be in charge of ensuring that four large-scale providers of cloud and tech services to banks are resilient and actively reducing the risk of cyber-attacks and major outages that could disrupt services for millions of people and businesses across the UK. The new powers allow the Bank and FCA to oversee 'critical third parties' such as Oracle and Microsoft, ensuring they have robust cyber-defences in place.

The regulation aims to safeguard the UK economy and protect consumers from potential harm caused by system failures. Why this matters: The Bank of England's new regulatory powers mark a significant shift in the UK's approach to managing the risks associated with critical technology providers. By directly overseeing key players like Amazon, Google, Oracle, and Microsoft, the Bank and FCA can help prevent major outages and cyber-attacks that could have far-reaching consequences for the economy and consumers.

This move underscores the growing recognition of the importance of robust cyber-defences in the financial sector and the need for regulators to stay ahead of emerging threats. As the UK's financial sector continues to rely on cloud and tech services, the effectiveness of this new regulatory framework will be closely watched, raising questions about how these powers will be exercised and what implications this may have for the global tech industry.