Prudential Regulation Authority Rulebook

2.1

A firm must identify its important business services and, where Group Supervision 22.2 applies, its important group business services.

2.2

A firm must set an impact tolerance for each of:

1. (1) its important business services; and
2. (2) where Group Supervision 22.2 applies, its important group business services.

2.3

The impact tolerance set for each important business service or important group business service must specify the first point at which a disruption to the important business service or important group business service would pose a risk to:

1. (1) where the firm is a relevant Solvency II firm, the stability of the UK financial system;
2. (2) the firm’s safety and soundness; or
3. (3) an appropriate degree of protection for those who are or may become the firm’s policyholders.

2.4

The impact tolerance set for each important business service or important group business services must specify the length of or point in time, in addition to any other relevant metrics, for which a disruption to that important business service or important group business service can be tolerated.

2.5

A firm must ensure it can remain within its impact tolerance for each important business service in the event of a severe but plausible disruption to its operations.

2.6

A firm must comply with 2.5 within a reasonable time of the rule coming into effect and in any event by no later than 31 March 2025.