Are MSPs Going to Be Regulated Under the Cyber Security and Resilience Bill?

What happened at the DSIT stakeholder sessionThe Department for Science, Innovation and Technology (DSIT) held a stakeholder session on the Cyber Security and Resilience Bill. For the first time, MSPs were explicitly discussed as potential direct subjects of regulation rather than simply as supply chain participants.The direction of travelThe government's position has shifted significantly. Earlier drafts of the Bill focused primarily on operators of essential services. The latest discussions suggest a broader scope that could bring MSPs under direct reporting obligations and minimum security requirements.What direct regulation would mean for MSPs

Mandatory incident reporting to regulators within defined timeframes

Minimum security standards that must be demonstrated, not just claimed

Regular assessments against frameworks like CAF 4.0

Potential liability for security failures affecting clients in regulated sectors

The timelineThe Bill is expected to receive Royal Assent in 2025 or 2026, with implementation phased over subsequent months. MSPs should not wait for final legislation before preparing.What to do nowMap your client base against regulated sectors. Assess your security posture against CAF 4.0. Implement continuous monitoring. Consider independent verification as both preparation for regulation and a competitive differentiator in the meantime.