In an evolving legal landscape with an increased interconnectedness of the world, legislation that governs technology and digital operations has become particularly significant. The EU is leading the way with a progressive regulatory approach, the latest stride being the Digital Operational Resilience Act (DORA).
DORA, an EU regulation, is a project of key importance that intends to model a stringent regulatory framework for both EU and Non-EU technology providers. These providers are critical to the functioning of the financial sector, with their operational resilience having severe implications for its stability.
In a recent alert, Goodwin highlighted the scope and application of DORA, accentuating the criteria for when technology providers will be subject to it. The grey area of key concern was understanding who would fall under DORA’s scrutiny, with the Act seemingly having a far-reaching potential impact.
With an aim to make the confusion surrounding the legal implications of DORA more manageable, a microsite was created to address DORA and the similar regulations followed in the UK. Aptly named Financial Regulations for Critical Third-Party Technology Providers in the EU and UK, the microsite serves as an information hub for individuals and corporations alike.
What is increasingly clear is that the European Union’s push for digital regulatory resilience is moving at a swift pace. Legal teams across global corporations and law firms should take note of these developments, understanding their implications, aligning their practices and preparing for their effects.