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ARTICLE · 18 OCTOBER 2021

New Rules On Material IT Outsourcing In The Financial Sector

NautaDutilh Avocats Luxembourg
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Effective 15 October 2021, financial institutions must notify the CSSF of any planned outsourcing of material IT activities.

LuxembourgFinance and Banking
Vincent Wellens
Vincent Wellens
Josée Weydert
Josée Weydert
Luc Courtois
Luc Courtois
Carmen Schellekens
Carmen Schellekens
Sigrid Heirbrant
Sigrid Heirbrant

Effective 15 October 2021, financial institutions must notify the CSSF of any planned outsourcing of material IT activities. This notification obligation replaces the prior authorisation requirement.

On 14 October 2021, the Luxembourg financial regulatory authority, the Commission de Surveillance du Secteur Financier ("CSSF"), issued a new circular (Circular 21/785) replacing the prior authorisation obligation for material IT outsourcing with a prior notification obligation (the "Circular"). The Circular also modifies certain contractual requirements applicable to cloud outsourcing, which should allow for more flexibility within corporate groups.

It is furthermore expected that the CSSF will issue in the near future a new, overarching circular on outsourcing to implement the 2019 EBA guidelines on outsourcing arrangements, which are applicable to all supervised entities falling within the scope of the Financial Sector Act of 5 April 1993 (FSA) and the Payment

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