BaFin Publishes Guidance on Outsourcing to Cloud Service Providers
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.
Related Links
Keywords: Europe, Germany, Banking, Insurance, Securities, Cloud Outsourcing, Guidance, Cloud Computing, Operational Risk, Bundesbank, BaFin
Previous Article
IOSCO Updates Peer Reviews on Regulation of Securitizations and MMFsRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.