11 Pre-contractual analysis

Before entering into any third-party arrangement, financial entities should:

• a. assess whether the third-party arrangement concerns a critical or important function, as set out in Title II;
• b. assess whether the supervisory conditions for contracting with TPSPs set out in Section 11.1 are met;
• c. identify and assess the relevant risks in relation to the third-party arrangement in accordance with Section 11.2;
• d. undertake appropriate due diligence on the prospective TPSP in accordance with Section 11.3; and
• e. identify and assess conflicts of interest that the use of TPSPs may cause in line with Section 7.