3.1 In this Chapter, the PRA is proposing to:

- expand the scope of existing third-party arrangements data collections to cover both material outsourcing and non-outsourcing ('material third-party') arrangements;

- require firms to submit material third-party Notifications in a standardised format, using a template which is aligned with the Register; and

- require firms to maintain and submit a Register to the PRA, ensuring this is up to date at least annually.

3.2 The proposals in this Chapter would result in subsequent changes to:

- The Glossary;

- The Notifications Part of the PRA Rulebook;

- The Regulatory Reporting Part of the PRA Rulebook; and

- Chapters 4 and 5 of SS2/21 - Outsourcing and third-party risk management.

3.3 Firms are becoming increasingly reliant on third-party arrangements, both outsourcing and non-outsourcing, to support their operations. This reliance on third-party service providers brings potential benefits and opportunities for the sector but could also pose risks to the safety and soundness of firms, policyholder protection or the financial stability of the UK. To better identify and address these risks, the regulators and the industry have highlighted the importance of collecting effective data on the use of material third-party arrangements.