Guidelines On Cloud-Based Outsourcing For Financial Institutions

In recognition of the increased tendency over recent years of financial institutions to outsource their IT function, and cloud computing becoming the preferred option for many firms, the European Securities and Markets Authority ("ESMA") has published a consultation paper dated 3 June 2020 providing Draft Guidelines on Outsourcing to Cloud Service Providers ("the Guidelines"), in line with the EBA Guidelines on Outsourcing Arrangements which came into effect on 30^th September 2019. The full text of the Guidelines may be accessed here

The Guidelines aim to provide guidance on the institutions' obligations to ensure that, when outsourcing to cloud service providers, compliance with their legal and regulatory obligations is not compromised.