Britain’s leading banks and insurers will join forces to fortify the financial system against cyber attacks with the launch of a dedicated cyber security body.

More than 20 of the UK’s largest banks, insurers and securities exchanges are planning the launch of the Financial Sector Cyber Collaboration Centre (FSCC) early next year, in a bid to counter the growing threat to private sector institutions from cyber criminals, the Times has reported.

The announcement follows collaboration from the National Crime Agency and National Cyber Security Centre, which have helped trade body UK Finance to establish the framework for the initiative.

Announcing the project at the UK Finance annual dinner, chief executive Stephen Jones said the FSCC offered the UK the opportunity to lead the world in cyber defence and ensure the country is the safest place to conduct financial services business.

“Cyber is like Nato, an attack on one is an attack on all,” he said. “Let’s redouble our efforts to collaborate, not compete, in this critical area and support the development of the Financial Sector Cyber Collaboration Centre.”

Banks, telecoms and energy companies are considered to be major targets for cyber criminals and hostile state actors because of their role as critical infrastructure essential to the proper function of society.

Jones explained that the FSCC project would require a level of mutual trust amongst participating institutions, featuring “circles of trust”, as firms would be “sharing their dirty laundry”.

Identifying information could be redacted as part of the agreement to data sharing, Jones explained, ensuring that the firm or suspected attacker would remain anonymous.

The body shares similarities with the Financial Systemic Analysis and Resilience Center, known as FSARC, in the US. The FSCC will need premises and staff, who may be seconded from participating organisations.

Responding to the announcement, Steven Chabinsky, partner and cybersecurity expert at law firm White & Case said based on experience of FSARC since it was founded in the US two years ago, the FSCC would likely have two functions: rapid sharing of tactical threat information, and long-term strategic planning to prepare for and counter worst case scenario cyber-attacks that could take down financial institutions and markets.

He added: “The strategic goals of the Centre will help address the government’s increased focus on financial services operational resilience and likely will feed into the Bank’s CBEST security assessment framework.

"The Centre also is certain to be viewed by the UK financial authorities as a means to enhance private sector-government collaboration and, as everyone prefers, to stave off potential regulatory intervention.”

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