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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EBA is issued a consultation on the draft guidelines on outsourcing in the EU. They will also apply to outsourcing agreements entered into before 30 June from the point they are reviewed or renewed.

This blog post identifies and explores the key themes of the day. The draft Guidelines apply in fully to intra-group outsourcing arrangements. Financial Institutions should only agree to sub-outsourcing if the service outsoourcing undertakes to:. It is fair to say that the EBA now has a considerable amount of homework.

EBA to issue final outsourcing guidelines in early 2019

The Public Consultation consisted of industry bodies, bank representatives, law firms, service providers and industry utilities in deep discussion and questioning the EBA for two hours. OCC issued a proposed rule on the company-run stress testing requirements for national banks and Federal savings associations. The Guidelines specify a.

The European Banking Authority will issue final guidelines early next year on what banks and other financial institutions should have in place when outsourcing some of their functions to third parties, including cloud providers. December 17, WebPage Regulatory News. The Draft Guidelines aim to integrate the Cloud Recommendations, and the Cloud Recommendations will be repealed when the final outsourcing guidelines take effect.

Financial Institutions should pay particular attention to conflicts of interest in the context of intra-group outsourcing arrangements. Our website uses cookies and similar technologies to allow us to promote our services and enhance your browsing experience. 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.


The Cloud Recommendations were published ahead of the full revision of the CEBS Guidelines, due to demand for timely guidance in this area. More about Pinsent Masons. Beyond the key themes identified below, the Public Consultation included discussions of the issues of internal audit, reporting and registration, and supervisory oversight.

In particular, each Financial Institution should ensure that the selection of a group entity is based on objective reasons, the conditions of the outsourcing arrangement are set at arms length and that they explicitly deal with any conflicts of interests that the outsourcing arrangement may entail.

In particular, third country institutions may set guidelinnes subsidiaries or branches in EU to get or maintain access to EU financial markets and infrastructure.

This approach was challenged at the Public Consultation on the grounds it could lead to operational risk, in particular ouhsourcing connection with cloud outsourcing arrangements. Many attendees at the Public Consultation noted that this scope was unduly onerous and would become administratively burdensome for firms to manage. Also notably, this FCA announcement was most likely a political nod to European regulators that UK financial services firms are expected to remain compliant with the leading European guidance on outsourcing to the cloud.

It should cover at least:. The additional requirements include provisions regarding: The aim of these Guidelines is to harmonise the framework for outsourcing arrangements of all financial institutions in the outsoudcing of the EBA’s action.

According to the draft Guidelines, each Financial Institution should maintain a register of its outsourcing arrangements which documents and records all current outsourcing arrangements and which includes certain specified information regarding: Share this post Select how you would like to share using ouutsourcing options below. Looking for news over 5 years guidelined The Cloud Recommendations, published on 20 Decemberbecame effective as of 1 July In the Draft Guidelines, the expected timeline for implementation of the new guidelines is 30 June and the grace period for updating existing outsourcing arrangements in line with the new guidelines is 31 Outsokrcing That consultation closed in September.

Inquire About Upcoming Events. Next Steps The Public Consultation consisted of industry bodies, bank cebd, law firms, service providers and industry utilities in deep discussion and questioning the EBA for two hours. Such advice should always be taken before acting on any of the matters discussed. This is a relatively short period of time considering not only the scope of the new guidelines, but also the breadth of change In-scope Entities face guideliines the coming 12 months.


The Guidelines will now apply to credit institutions and investment firms jointly “institutions”ouhsourcing well as payment institutions and electronic money institutions jointly “payment institutions”. The Guidelines specify a set of aspects that should be encoded within the written outsourcing agreement.

The Guidelines provide the responsibilities of the management body for the establishment of an appropriate framework for outsourcing, its implementation and application in ougsourcing group, the.

According to the EBA, competent authorities must grant authorisation in full compliance with EU Law and should set a strict framework in line with the draft Guidelines for outsourcing from Financial Institutions to third country entities and ensure gkidelines and effective supervision. By Regulatory News June 22, The EBA recently published the responses it received to its consultation, including submissions from Pinsent Masons, the law firm behind Out-Law.

CEBS: Guidelines on outsourcing | Practical Law

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.

Click here to start your search. 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 cebe was already a requirement pursuant to Article of Capital Requirements Directive CRD IV. Specific guidance is provided on the relationship between institutions, payment institutions and service providers, including on their rights and obligations. As a result, both cloud and FinTech featured heavily on the agenda at the Public Consultation.