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The Draft Guidelines, which review the existing CEBS Guidelines on Outsourcing published in (CEBS Guidelines), are the EBA’s. on outsourcing. by PLC Financial Services. Related Content. CEBS: Guidelines on outsourcing. by PLC Financial Services. Related Content. They review the existing Committee of European Banking Supervisors (CEBS) guidelines on outsourcing, which were published in

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The Guidelines guidrlines criteria to ensure a more harmonised assessment of the criticality or importance of outsourcig. Financial Institutions should pay particular attention to conflicts of interest in the context of intra-group outsourcing arrangements.

The Guidelines provide comprehensive and detailed requirements relating to outsourcing, covering both the internal governance duties for institutions and payment institutions using external outsourcingg, contractual arrangements with an insourcer outsourceeand supervision over the outsourced functions, not only by the institutions and payment institutions themselves, but also by relevant supervisory authorities. The EBA also emphasised the need for a cooperation agreement between relevant competent authorities if the outsourcing service provider is located in a third country see paragraph 26 of the Draft Guidelines.

Guidelinea Svensson Partner Sweden. Outsourcing to service providers located outside the EEA must be subject to additional safeguards that ensure that they do not lead to an undue increase of risks or impair the ability of competent authorities to effectively supervise institutions and payment institutions.

Using proactive remedies to solve outsourcing contract problems Guide: One attendee at the Public Consultation requested that the EBA extend the timeline for implementation, but whether the EBA will heed this or any of the recommendations made at the Public Consultation, remains to be seen. It has promised a report or opinion on “cross-border obstacles with regard to innovation” between the beginning of April and vuidelines of June Shane Barber Managing Partner Australia.

The Guidelines include requirements which kutsourcing at ensuring that: Stefano Febbi Partner Italy. December 18, WebPage Regulatory News. The Cloud Recommendations were published ahead of the full revision of the CEBS Guidelines, due to demand for timely guidance in this area. Trystan Tether Partner UK.

The EBA confirmed they had not yet considered this point and advised that they would reflect and clarify the position in the final guidelines. They will also apply to outsourcing agreements entered into before 30 June from the point they are reviewed or renewed. The guidelines also stipulate that institutions outaourcing ensure audit and access rights in written outsourcing agreements both for themselves and for competent authorities and institutions are required to maintain a register of all outsourcing arrangements.


The European Banking Authority will issue final guidelines early next year on outourcing banks and other financial institutions should have in place when outsourcing some of their functions to third parties, guidelnes cloud providers. The Cloud Recommendations, published on 20 Decemberbecame effective as of 1 July Notwithstanding, it seems unlikely that the EBA will make any concessions in the final guidelines for FinTech providers.

That consultation closed in September. Pauline Kuipers Ouutsourcing Netherlands. Outsourcing is relevant in the context of gaining or maintaining access to the EU financial market.

EBA Consults on Guidelines on Outsourcing in the EU

December 20, WebPage Regulatory News. Alexander Shepherd Partner Singapore. This briefing is for general guidance only and should not be regarded as a substitute for professional advice.

The revised guidelines deal with the responsibilities of the management body for the establishment of an appropriate framework for outsourcing, its implementation and application in a group, the due diligence process, and risk guideliens before entering such arrangements.

Specific guidance is provided on the relationship between institutions, payment institutions and service providers, crbs on their rights and obligations.

They also provide a harmonised set of criteria for assessing criticality or importance. The Guidelines provide the responsibilities of the management febs for the establishment of an appropriate framework for outsourcing, its implementation and application in a group, the due diligence process and risk assessment before entering in such arrangements.

Paul Hermant Partner Belgium. The draft guidelines provide a clear definition of outsourcing and specify the criteria to assess whether or not an outsourced activity, service, process, or function or part of it is critical or important. Want to find more news articles? At the Public Consultation, the EBA confirmed that intra-group arrangements should be subject to the same degree of rigour and risk assessment as third-party arrangements, but noted that this scope was not new and was already a requirement pursuant to Article of Capital Requirements Directive CRD IV.

It has still to confirm when in that paper will be published. Therefore, In-Scope Entities will need to consult only one set of guidelines for outsourcing both cloud and non-cloud. Notably, the broadening of the addressees of the Draft Guidelines In-scope Entitiesto include payment institutions subject to the revised Payment Services Directive PSD2 and electronic money institutions subject to the e-money Directivewas not discussed in detail at the Public Consultation.


Institutions and payment institutions should ensure that the service provider grants them and their competent authorities complete access to all relevant business premises access rights and unrestricted rights of inspection and auditing related to the outsourcing arrangement audit rights.

Beyond the key themes identified below, the Public Consultation included discussions of the issues of internal audit, reporting and registration, and supervisory oversight. Here you can read the Guidelines. The draft Guidelines seek to establish a more harmonised framework for all financial institutions supervised by the EBA. The EBA opened a consultation on proposed new outsourcing guidelines back in June.

If a competent authority considers concentration risk to be too great, then it may order the cessation of such an arrangement.

The draft Guidelines apply in fully to intra-group outsourcing arrangements. The draft Guidelines stipulate that gudelines outsourcing policy should consider the main phases of the life cycle of outsourcing arrangements and define the principles, responsibilities and processes in relation to outsourcing. Cookies on Pinsent Masons website Our website uses cookies and similar technologies to allow us to promote our services and enhance your browsing experience.

EBA to issue final outsourcing guidelines in early

This requires In-Scope Entities to balance the drive to be innovative and market-leading which appears to be encouraged by the EBA in the FinTech Roadmap with the need to implement robust contractual arrangements and operational processes to manage risk as required by the Draft Guidelines. The draft Guidelines are considerably more prescriptive than the CEBS Guidelines, guidelins regarding their scope; the outsourcing policy; the outsourcing contract; other documentation requirements; risk assessments; outsourcing of critical and important functions; outsourcing to third countries; intra-group outsourcing; and sub-outsourcing.

We remain guidelinds that the EBA will address these key issues when it comes to finalise the guidelines in the first quarter of ,” she said. The Draft Guidelines outsojrcing that intra-group arrangements, as well as third-party outsourcings, must comply with the Draft Guidelines.

Inthe EBA has also promised to issue guidelines and a report or opinion on IT management and security. This is a relatively short period guideilnes time considering not only the scope of the new guidelines, but also the breadth of change In-scope Entities face in the coming 12 months.