In April 2012, the Committee on Payment and Settlement Systems, now known as the Committee on Payments and Markets Infrastructures (CPMI), and the International Organisation of Securities Commissions (IOSCO) published ‘Principles for financial market infrastructures’ (the Principles). Annex F of the Principles outline five oversight expectations for critical service providers in order to support a financial market infrastructure’s (FMI) overall safety and efficiency.
Key oversight expectations applicable to critical service providers include:
- risk identification and management;
- information security;
- reliability and resilience;
- technology planning; and
- communication with users.
The CPMI and IOSCO have now jointly published a document which establishes an assessment methodology and provides guidance for regulators, supervisors and overseers in assessing an FMIs critical service providers against the oversight expectations in Annex F of the Principles. The assessment methodology mirrors the approach used in the CPSS-IOSCO ‘Principles for financial market infrastructures: disclosure framework and assessment methodology’ report.