{"id":"circulars/cssf-22-805","title":"Circular CSSF 22/805","type":"circular","date":"2022-04-22","kind":"circular","html":"

Circular CSSF 22/805 is a CSSF circular, published 22 April 2022. Subject: Revised EBA Guidelines on outsourcing arrangements (EBA/GL/2019/02) – Publication of Circular CSSF 22/806 on outsourcing arrangements – Repeal or amendments of certain circulars CSSF.

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Relevant for: AIFMs, Central Securities Depositories (CSDs), Credit institutions, Data Reporting Service Providers (DRSPs), E-money institutions, Investment firms, Management companies - Chapter 15, Part II UCIs, Payment institutions, Pension funds, Securitisation undertakings, SICARs, SIFs, Specialised PFS, Support PFS, UCITS.

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Keywords: Cloud, Information and communications technology (ICT), Internal governance, Operational risk, Outsourcing.

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Repeals Circular CSSF 19/714, Circular CSSF 21/777, Circular CSSF 21/785, FAQ Cloud Computing Circular.

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Text

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Circular CSSF 22/805 Revised EBA Guidelines on outsourcing arrangements (EBA/GL/2019/02) Publication of Circular CSSF 22/806 on outsourcing arrangements – Repeal or amendments of certain circulars CSSF

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Circular CSSF 22/805 Re:Revised EBA Guidelines on outsourcing arrangements (EBA/GL/2019/02) - Publication of Circular CSSF 22/806 on

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outsourcing arrangements – Repeal or amendments of certain circulars CSSF Luxembourg, 22 April 2022

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Ladies and Gentlemen,

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To all credit institutions and professionals of the financial sector within the meaning of the Law of 5 April 1993 on the financial sector (LFS)

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  1. The purpose of this circular is to inform you that the CSSF, in its capacity as competent authority, applies the revised EBA Guidelines on outsourcing arrangements (EBA/GL/2019/02 or the Guidelines) 1. Consequently, the CSSF has integrated them into its administrative practice and regulatory
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To all payment institutions and electronic money institutions within the meaning of the Law of 10 November 2009 on payment services (LPS)

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approach via the Circular CSSF 22/806 (or the Circular) with a view to contribute to supervisory convergence at European level. 2. While the aforementioned Guidelines apply to credit institutions, investment firms and payment and electronic money institutions only, having due

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To all investment fund managers subject to Circular CSSF 18/698

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regard to the principle of proportionality, the Circular covers a wider scope of supervised entities. The Circular represents the CSSF’s integrated framework on outsourcing arrangements and introduces a harmonised

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To all undertakings for collective investment in transferable securities subject to Part I (UCITS) of the UCITS Law which designate a management company within the meaning of the UCITS Law

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framework governing outsourcing arrangements in order to promote convergence at a national level. 3. The

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technology

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gathers

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all

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including

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(ICT)

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supervisory those

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outsourcing

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requirements

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information

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arrangements

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and

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that

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outsourcing

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communication were

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previously

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disseminated in individual circulars, in one single document. While setting

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To all central counterparties (CCPs), including Tier 2 thirdcountry CCPs, complying with the relevant requirements of EMIR

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out the supervisory requirements on outsourcing arrangements (including in case of sub-outsourcing), the Circular amends the framework on internal governance arrangements of supervised entities by:

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To all approved publication arrangements (APAs) with a derogation and authorised reporting mechanisms (ARMs) with a derogation within the meaning of the LFS

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aligning the definition of outsourcing to the MiFID framework;

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defining criteria for the assessment of outsourcing arrangements and in particular for the identification of critical or important functions that shall be subject to more stringent requirements, thus recognising that outsourcing arrangements may be managed according to a risk-based approach;

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To all market operators operating a trading venue within the meaning of the LFS To all central securities depositories (CSDs)

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Circular

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arrangements,

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providing guidance on the requirements that are applicable when outsourcing arrangements relate to internal control functions and to the financial and accounting function respectively;

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To all administrators of critical benchmarks

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The Guidelines are available on the EBA’s website at www.eba.europa.eu. The Guidelines repeal the CEBS guidelines on outsourcing of 14 December 2006 and the EBA recommendations on outsourcing to cloud service providers of 20 December 2017 (EBA/REC/2017/03) as of 30 September 2019. Said recommendations have been integrated into the Guidelines.

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The text above is the opening of the document; the PDF carries the whole.

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Document page, PDF. Source: Commission de Surveillance du Secteur Financier (CSSF), reproduced with the CSSF's consent. The French text prevails.

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