On 6 May 2021, the FCA updated its webpage regarding outsourcing and operational resilience.
The FCA has added to the bottom of the webpage a new section entitled ‘Who the EBA outsourcing guidelines apply to’.
Among other things this new section explains that:
- The FCA notified the European Banking Authority (EBA) that it would comply with the EBA guidelines on outsourcing which also included the EBA’s final report on cloud recommendations. In line with the FCA’s approach to Level 3 materials set out in Policy Statement 19/5, the FCA expects firms to continue to comply with the EBA guidelines to the extent they remain relevant now that the UK has left the EU.
- The EBA guidelines came into force on 30 September 2019 for outsourcing arrangements including those started, reviewed or amended on or after this date. There are also transitional arrangements covering cooperation agreements extending up to 2021, a register of outsourcing and the review of existing ‘critical or important’ outsourcing arrangements entered into before 30 September 2019.
- Firms are not expected to report to the FCA on their progress towards meeting the timeline of 31 December 2021 in the EBA guidelines regarding legacy outsourcing arrangements. Firms should aim to review any outstanding critical or important outsourcing arrangement at the first appropriate contract renewal following the first renewal date of each existing outsourcing arrangement or revision point. Where arrangements of critical or important outsourcing arrangements have not been finalised by 31 March 2022, firms should inform the FCA.
Further information on the NRF Outsourcing Toolkit can be found here.