On 18 March 2024, the Financial Stability Board (FSB) published a revised version of its 2016 guidance on arrangements to support operational continuity in resolution.

The 2016 guidance assists supervisory and resolution authorities, and financial institutions to evaluate whether financial institutions that are subject to resolution planning requirements have appropriate arrangements to support operational continuity if they enter resolution.

The FSB has now updated the 2016 guidance by adding as an addendum a supplementary note on the digitalisation of critical shared services. The FSB has done this in light of financial institutions increasing their dependency on third-party service providers in supporting critical shared services. This can bring benefits but, if not properly managed, disruption to critical shared services could affect the continued provision of critical functions, posing risks to orderly resolution and, in some cases, financial stability.