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ARTICLE · 15 JUNE 2020

Getting Cautious On Cloud Outsourcing: ESMA Consults On Proposed Guidelines

Jones Day
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On June 3, 2020, the European Securities Market Authority ("ESMA") published a consultation paper on Outsourcing to Cloud Service Providers ("Proposed Guidelines"), which will apply to any...

United StatesFinance and Banking
Philippe Goutay
Philippe Goutay
Michael Haas
Michael Haas
Olivier Haas
Olivier Haas
Michael R. Fischer
Michael R. Fischer
Undine Von Diemar
Undine Von Diemar
Jörg Hladjk
Jörg Hladjk
Patrizia Gioiosa
Patrizia Gioiosa
Aidan Lawes
Aidan Lawes
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In Short

The Situation: On June 3, 2020, the European Securities Market Authority ("ESMA") published a consultation paper on Outsourcing to Cloud Service Providers ("Proposed Guidelines"), which will apply to any institution under the direct or indirect jurisdiction of ESMA.

The Result: ESMA proposes a set of guidelines limited to cloud outsourcing, which are partially inspired by the 2019 EBA guidelines on outsourcing. The guidelines must be endorsed by EU national competent authorities and will not override more stringent rules applicable to certain categories of institutions.

Looking Ahead: The Proposed Guidelines are under consultation until September 1, 2020, and once adopted will enter into force on June 30, 2021. They will apply to all new or revised cloud arrangements, and legacy arrangements will have to conform to the Proposed Guidelines no later than December 31, 2022.

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