BaFin published guidance on outsourcing to cloud service providers. This guidance, which represents a joint assessment by BaFin and the Deutsche Bundesbank, is addressed to credit institutions, financial services institutions, insurance undertakings, pension funds, investment services enterprises, capital management companies, payment institutions, and e-money institutions. The guidance does not establish any new requirements but instead reflects the current supervisory practice in outsourcing cases.
The guidance pursues the objective of creating, for the supervised entities, an awareness of the issues involved in dealing with cloud services and the related requirements of supervisory law. It draws attention to various aspects that the supervised entities should take into account when outsourcing to cloud service providers, for example, in the context of risk analysis and contractual terms. Over the past months, BaFin and Bundesbank have been in discussions with cloud service providers as well as with the supervised entities about plans for outsourcing to cloud service providers. Furthermore, at the EIOPA and the EBA levels, within the Single Supervisory Mechanism, as well as bilaterally between the national supervisory authorities, a constant exchange about how to deal with outsourcing to cloud service providers has emerged.
Keywords: Europe, Germany, Banking, Insurance, Securities, Cloud Outsourcing, Guidance, Cloud Computing, Operational Risk, Bundesbank, BaFin
Previous ArticleUN and Leading Banks Launch Principles for Responsible Banking
MAS and Temasek jointly released a report to mark the successful conclusion of the fifth and final phase of Project Ubin, which focused on building a blockchain-based multi-currency payments network prototype.
EBA published phase 2 of the technical package on the reporting framework 2.10, providing the technical tools and specifications for implementation of EBA reporting requirements.
APRA updated the lists of the Direct to APRA (D2A) validation rules for authorized deposit-taking institutions, insurers, and superannuation entities.
PRA updated the statement that provides guidance to regulated firms on implementation of the EBA guidelines on reporting and disclosure of exposures subject to measures applied in response to the COVID-19 crisis.
EBA updated the 2019 list of closely correlated currencies that was originally published in December 2013.
FASB issued a proposed Accounting Standards Update that would grant insurance companies, adversely affected by the COVID-19 pandemic, an additional year to implement the Accounting Standards Update No. 2018-12 on targeted improvements to accounting for long-duration insurance contracts, or LDTI (Topic 944).
APRA updated the regulatory approach for loans subject to repayment deferrals amid the COVID-19 crisis.
BCBS and FSB published a report on supervisory issues associated with benchmark transition.
IAIS published a report on supervisory issues associated with benchmark transition from an insurance perspective.
ESMA updated the reporting manual on the European Single Electronic Format (ESEF).