Repealed
The Guidelines aim at promoting an appropriate level of convergence in supervisory approaches to outsourcing. The Guidelines are based on current supervisory and market practices and also take into account international and European developments in the field of outsourcing.
The Committee of European Banking Supervisors (CEBS) is publishing today the final set of guidelines on outsourcing of credit institutions' business activities.
The aim of the CEBS guidelines is to promote an appropriate level of convergence in supervisory approaches to outsourcing. The proposed guidelines are based on current supervisory and market practices and also take into account international and European developments in the field of outsourcing.
CEBS and the Committee of European Securities Regulators (CESR) have worked together closely to ensure that the proposed guidelines are consistent with the regulatory framework defined by the Markets in Financial Instruments Directive (MiFID) and its application to credit institutions.
The proposed guidelines define outsourcing as "an authorised entity's use of a third party to perform activities that would normally be undertaken by the authorised entity". The use of a third party changes the risk profile of an authorised entity. It can mitigate risks but it can also create new risks. Proper management of all related risks is therefore essential. So one key aspect is that outsourcing arrangements can never result in the delegation of senior management's responsibilities.
The proposed guidelines are principles-based and are designed to ensure an appropriate level of convergence, while leaving sufficient room for flexibility at the national level in order to accommodate specific rules and market practices.