The European Banking Authority (EBA) has released revised guidelines on outsourcing arrangements setting out specific provisions for the governance frameworks of all financial institutions within the scope of the EBA’s mandate with regard to their outsourcing arrangements and related supervisory expectations and processes. The guidelines include a specific section on requirements for business continuity planning.
The new guidelines, which are consistent with the requirements on outsourcing under the Payments Services Directive (PSD2), the Markets in Financial Instruments Directive (MiFID II) and the European Commission’s Delegated Regulation (EU) 2017/565, aim to ensure that institutions can apply a single framework on outsourcing for all their banking, investment and payment activities and services. Such a framework also ensures a level playing field between different types of financial institutions.
The EBA Guidelines will enter into force on 30 September 2019 and contain some transitional periods.
This article was first published in April 2019.