Shearman & Sterling LLP | FinReg | The European Banking Authority Consults on the Use of Cloud Service Providers by Financial Institutions
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  • The European Banking Authority Consults on the Use of Cloud Service Providers by Financial Institutions

    05/18/2017
    The European Banking Authority has published for consultation draft Recommendations on outsourcings by financial institutions to cloud service providers.

    The EBA has identified the need for specific guidance for outsourcing to cloud service providers to address uncertainty regarding supervisory expectations in this area. The draft Recommendations build on the existing outsourcing guidelines by the Committee of European Banking Supervisors, published in 2006, which the EBA intends to update in due course.

    The draft Recommendations address five key areas: the security of data and systems, location of data and data processing, access and audit rights, chain outsourcing, and contingency plans and exit strategies. The draft Recommendations would apply to banks and investment firms subject to the Capital Requirements Directive as well as and national regulators. The EBA will consider whether to extend the applicability of the draft Recommendations to other regulated firms.

    The consultation closes on August 18, 2017.

    View the Recommendations.

    View the CEBS Guidelines.