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

    UK Authorities Consult on Implementation of Basel 3.1 Standards

    The UK authorities have published consultations with respect to the Basel requirements for banks. The Prudential Regulation Authority (PRA) published the consultation paper CP16/22 on rules for the implementation of Basel 3.1 standards.

    November 30, 2022 WebPage Regulatory News

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News

    FSB and NGFS Publish Initial Findings from Climate Scenario Analyses

    The Financial Stability Board (FSB) and the Network for Greening the Financial System (NGFS) published a joint report that outlines the initial findings from climate scenario analyses undertaken by financial authorities to assess climate-related financial risks.

    November 15, 2022 WebPage Regulatory News

    FSB Issues Reports on NBFI and Liquidity in Government Bonds

    The Financial Stability Board (FSB) published a letter intended for the G20 leaders, highlighting the work that it will undertake under the Indian G20 Presidency in 2023 to strengthen resilience of the financial system.

    November 14, 2022 WebPage Regulatory News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News

    EU Finalizes Rules Under Crowdfunding Service Providers Regulation

    The European Union has finalized and published, in the Official Journal of the European Union, a set of 13 Delegated and Implementing Regulations applicable to the European crowdfunding service providers.

    November 08, 2022 WebPage Regulatory News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8597