The European Banking Authority Guidelines on Outsourcing Arrangements 2019
On 26 February 2019, the European Banking Authority (“EBA”) published final Guidelines on Outsourcing Arrangements (the “EBA Guidelines”), which build on the previous 2006 CEBS Outsourcing Guidelines published and incorporate the EBA’s Guidelines on outsourcing to cloud service providers by financial institutions, which were published in 2017.
Key Insights for the Financial Services Industry
The EBA Guidelines are applicable as of 30 September 2019, by which date, firms must amend their outsourcing policies and governance framework accordingly.
The Guidelines contain a transitional provision to allow existing outsourcing agreements with service providers to be amended to reflect the Guidelines upon the date of the agreement’s renewal or review but by no later than by 31 December 2021.
The Irish Regulator has stated that it expects firms’ to demonstrate engagement with these updated Guidelines and for this to be reflected in their outsourcing policies, procedures and contracts.