FCA Warns UK Firms: 31 March Operational Resilience Deadline

With the countdown to the 31 March 2025 operational resilience compliance deadline well underway, the UK financial services sector faces a critical juncture. The Financial Conduct Authority (FCA) has issued a stark reminder for firms to align with PS21/3 regulations, emphasising that failure to act could result in severe operational, reputational, and financial consequences. 

Ruleguard, a provider of compliance technology solutions, said the FCA’s insights and observations highlight significant gaps in readiness across key areas, including the identification of important business services, setting impact tolerances, and scenario testing. Firms such as banks, insurers, PRA designated investment firms, and Recognised Investment Exchanges, must ensure full compliance by the March 2025 deadline. 

Ruleguard’s Head of Risk & Compliance; Priscilla Gaudoin, said operational resilience is a fundamental pillar for safeguarding consumers, markets, and businesses. “The FCA’s observations reveal that many firms are lagging in areas such as comprehensive mapping, rigorous scenario testing, and the inclusion of third-party dependencies in their resilience strategies. Failure to comply could expose firms to intolerable harm, regulatory penalties, and lasting damage to their reputation.

Priscilla stated that failure to comply with the UK Financial Conduct Authority's (FCA) operational resilience rules by 31 March 2025 could have significant consequences for firms. Non-compliance may result in enforcement actions, fines, and reputational damage, as the FCA expects firms to ensure continuity of important business services during disruptions. Failure to meet these expectations could also lead to regulatory scrutiny, damage to stakeholder confidence and customer trust.

“Operational resilience is not merely a regulatory requirement but a critical business necessity. Firms that fail to identify, map, and review important business services risk leaving vulnerabilities unaddressed, which could result in severe operational disruptions. Additionally, inadequate scenario testing and impact tolerance setting may lead to insufficient preparedness for adverse events, exposing firms to potential financial losses and consumer harm.

“Moreover, poor management of third-party relationships could compromise service delivery, as firms remain accountable for maintaining impact tolerances, even if third parties fail. Non-compliance can also hinder long-term business sustainability, as operational resilience is based upon effective risk management and strategic planning frameworks. By not embedding these principles, firms risk being outpaced by competitors who prioritise resilience, leading to diminished market position and growth potential."

“We are committed to supporting firms in their endeavours to demonstrate compliant processes, and to respond and recover from severe but plausible scenarios. Our platform provides firms with the tools they need to address these critical challenges, empowering them to build robust operational resilience frameworks efficiently and effectively.

“With the transition period for operational resilience compliance drawing to a close, firms must act decisively to meet regulatory expectations. The FCA has made it clear that compliance is not a one-time requirement but an ongoing commitment to building a culture of resilience. Businesses need comprehensive solutions to ensure they are properly prepared to meet the deadline and maintain resilience in an ever-evolving risk landscape.”

Background: How Ruleguard Can Help

Ruleguard offers an end-to-end compliance solution tailored to the specific requirements of the FCA’s operational resilience framework. Ruleguard’s Operational Resilience software, centralises and automates processes to reduce manual workload and regulatory risk. 

Key Features include:

Centralised Management of Important Business Services

Ruleguard’s Operational Resilience Software consolidates the management of important business services into a single platform. This holistic approach maps dependencies across people, processes, systems, and vendors, ensuring proactive vulnerability identification and regulatory compliance.

Alignment with Regulatory Frameworks

The software is designed to meet FCA and PRA requirements with pre-built templates and customisable workflows. It simplifies compliance, supports impact tolerance development, and enhances readiness for audits and evolving regulations.

Proactive Risk Management and Business Continuity

The platform offers reporting tools, and automated alerts to facilitate rapid risk mitigation. Testing and simulation capabilities support proactive planning, ensuring critical services remain operational during disruptions.

Enhanced Third-Party Oversight

Ruleguard provides tools for vendor performance assessment, compliance monitoring, and automated oversight, reducing risks associated with third-party failures while strengthening operational resilience. 

About Ruleguard

Ruleguard is a leading compliance technology provider, specialising in operational resilience, risk management, and regulatory compliance. Our vision is a Financial Services market where it’s easy for firms to comply with various regulations through innovative software. Trusted by financial services firms across the UK, Ruleguard delivers the expertise and tools needed to navigate complex regulatory landscapes with confidence.