UK Regulators Relax Cloud Computing Rules
Regulators in the UK are relaxing policies surrounding cloud computing in order to foster an environment of innovation among corporations utilizing cloud computing technologies.
The Financial Conduct Authority (FCA) passed a set of new guidelines giving more control to corporations to chose their own path. The FCA says it has no problem with companies using public cloud services so long as the companies comply with existing regulations.
One of the primary reasons for the decision is to support competition within the financial technology sector. Previously there were certain barriers for companies hoping to outsource cloud services through third-parties.
Now the FCA will relax those rules a bit and extend its current guidelines to outsourced IT services. “Our aim is to avoid imposing inappropriate barriers to firms’ ability to outsource to innovative and developing areas, while ensuring that risks are appropriately identified and managed,” the FCA said in a report.
The ruling from the FCA is the latest move from the British government to bolster support for the UK’s growing fintech sector. London is considered by some to be the financial technology center of the world. Part of that distinction comes from the role that the UK government plays in fostering competitive and open environments for burgeoning fintech startups.
Cloud computing is one of the fast growing sub-industries within fintech, and this move from the FCA may help increase competiveness and the adoption of industry standards within London.