Featured Product

    EC Proposes Cybersecurity Rules; ESRB Issues Recommendations for SCICF

    March 25, 2022

    The European Commission (EC) proposed rules to establish common cybersecurity and information security measures across the institutions and agencies in European Union (EU) while the European Systemic Risk Board (ESRB) has set out recommendations for a pan-European systemic cyber incident coordination framework (EU-SCICF) for relevant authorities.

    EC Proposal on Cybersecurity Regulation

    The proposed regulation will put in place a framework for governance, risk management, and control in the cybersecurity area and will

    • strengthen the mandate of the Computer Emergency Response Team for the EU institutions, bodies, offices, and agencies (CERT-EU) as a threat intelligence, information exchange, and incident response coordination hub, a central advisory body, and a service provider
    • rename CERT-EU from "Computer Emergency Response Team" to "Cybersecurity Center," in line with developments in the member states and globally
    • lead to the creation of a new inter-institutional Cybersecurity Board, boost cybersecurity capabilities, and stimulate regular maturity assessments and better cyber-hygiene
    • require all institutions, bodies, offices, and agencies to share incident-related information with CERT-EU without undue delay

    EC Proposal on Information Security Regulation

    The proposed Information Security Regulation will create a minimum set of information security rules and standards for all EU institutions, bodies, offices, and agencies to ensure an enhanced and consistent protection against the evolving threats to their information. It will

    • provide a stable ground for a secure exchange of information across EU institutions, bodies, offices, and agencies and with the member states, based on standardized practices and measures to protect information flows
    • set up an efficient governance to foster the cooperation across all EU institutions, bodies, offices and agencies, namely an inter-institutional Information Security Coordination Group
    • establish a common approach to information categorization based on the level of confidentiality and modernize the information security policies, fully including digital transformation and remote work
    • streamline current practices and achieve greater compatibility between the relevant systems and devices.

    ESRB Recommendations on Cyber-Incident Coordination Framework

    ESRB is responsible for the macro-prudential oversight of the financial system in EU. In fulfilling its mandate, ESRB contributes to the prevention and mitigation of systemic risks to financial stability, including those related to cyber incidents and proposes how these risks might be mitigated. To this end, ESRB has adopted and published the following key recommendations in the Official Journal of the European Union:

    • Recommendation A relates to the establishment of EU-SCICF. As mentioned in the EC proposal on the Digital Operational Resilience Act (DORA), ESRB recommends that the European Supervisory Authorities (ESAs) should start preparing for the gradual development of an effective EU-level coordinated response in the event of a cross-border major cyber incident or related threat that could have a systemic impact on the financial sector. ESAs should also undertake a mapping and subsequent analysis of current impediments as well as legal and other operational barriers for the effective development of the EU-SCICF. ESAs are requested to deliver certain reports on the implementation of sub-parts of Recommendation A from June 30, 2023 to June 30, 2025, given certain other conditions with respect to the entry into force of DORA.
    • Recommendation B is to establish points of contact of the EU-SCICF. The recommendation is that ESAs, the European Central Bank (ECB), and each member state among their relevant national authorities should designate a main point of contact that should be communicated to the ESAs. The contact list will facilitate the development of the framework and, once the EU-SCICF is in place, the points of contact and the ESRB should be informed in case of a major cyber incident. By June 30, 2023, but no earlier than six months after DORA enters into force, ESAs, ECB, and member states are requested to deliver to the European Parliament, the Council, the Commission and to the ESRB a report on the implementation of Recommendation B.
    • Recommendation C stipulates that, based on the result of the analyses carried out in accordance with Recommendation A, EC should consider the appropriate measures needed to ensure effective coordination of responses to systemic cyber incidents. By December 31, 2023, but no earlier than 12 months after DORA enters into force, EC is requested to deliver to the European Parliament, the Council, and to the ESRB a report on the implementation of Recommendation C in view of the interim report of the ESAs in accordance with sub-Recommendation A. By December 31, 2025, but no earlier than 36 months after DORA enters into force, EC is requested to deliver to the European Parliament, the Council, and to the ESRB a report on the implementation of Recommendation C in view of the reports of the ESAs in accordance with Recommendation A.

     

    Related Links

     

    Keywords: Europe, EU, Banking, EU-SCICF, Cyber Risk, Operational Resilience, DORA, ESAs, Operational Risk, Systemic Risk, Regtech, Suptech, Cyber Incident Coordination Framework, Cyber Incident Reporting, ESRB, CERT-EU, EC

    Featured Experts
    Related Articles
    News

    EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation

    The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).

    May 23, 2022 WebPage Regulatory News
    News

    EBA Publishes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.

    May 23, 2022 WebPage Regulatory News
    News

    EIOPA Examines Physical Climate Risk Exposure, SII Non-Compliance

    The European Insurance and Occupational Pensions Authority (EIOPA) published a report assessing insurers' exposure to physical climate change risks

    May 20, 2022 WebPage Regulatory News
    News

    NGFS Report Explores Quantification of Climate Risk Differentials

    The Network for Greening the Financial System (NGFS) published two reports to aid central banks and regulators in their oversight of the financial sector and in their central bank operations

    May 19, 2022 WebPage Regulatory News
    News

    EC Publishes Results on Review of Web Accessibility Directive

    The European Commission (EC) published the results of a public consultation, held in October 2021, on the review of the Web Accessibility Directive.

    May 19, 2022 WebPage Regulatory News
    News

    MAS Consults on Adjustment Spreads for Conversion of SOR Contracts

    The Monetary Authority of Singapore (MAS) and the SC-STS are jointly consulting, until June 10, 2022, on setting adjustment spreads for the conversion of legacy SOR contracts to SORA reference rate.

    May 18, 2022 WebPage Regulatory News
    News

    OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities

    The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.

    May 17, 2022 WebPage Regulatory News
    News

    EBA Proposes Standards to Support Secondary NPL Markets

    The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.

    May 17, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).

    May 13, 2022 WebPage Regulatory News
    News

    EBA Issues Standards for Crowdfunding Service Providers Under ECSPR

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.

    May 13, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8206