85. In addition to the elements referred to in paragraph 84, the third-party arrangement supporting …

In addition to the elements referred to in paragraph 84, the third-party arrangement supporting critical or important functions should set out at least:

• a. the agreed service level descriptions, including updates and revisions thereof, with precise quantitative or/and qualitative performance targets for the function provided to allow for effective, timely monitoring by the financial entity so that appropriate corrective action can be taken without undue delay if the agreed service levels are not met;
• b. the notice periods and reporting obligations of the TPSP to the financial entity, including the communication by the TPSP of any development that may have a material impact on the TPSP’s ability to provide the services supporting critical or important functions in line with the agreed service levels and in compliance with applicable laws and regulatory requirements and, as appropriate, the obligations to submit reports of the internal audit function of the TPSP.
• c. whether the TPSP should take out mandatory insurance against certain risks and, if applicable, the level of insurance cover requested;
• d. the requirements for the TPSP to implement and test business contingency plans;
• e. the right of the financial entity to monitor the TPSP’s performance on an ongoing basis, which entails the following:
• i. the unrestricted right of access of financial entities and competent authorities to inspect and audit the TPSP, as specified in Section 1312.2;
• ii. the right to agree on alternative assurance levels if other clients’ rights are affected;
• iii. the obligation of the TPSP to fully cooperate during the onsite inspections and audits performed by the competent authorities, the financial entity or an appointed third-party; and
• iv. the obligation to provide details on the scope, procedures to be followed and frequency of such inspections and audits;
• f. exit strategies, establishing a mandatory adequate transition period:
• i. during which the TPSP will continue providing the respective functions with a view to reducing the risk of disruption at the financial entity or ensuring its effective resolution and restructuring; and
• ii. allowing the financial entity to migrate to another TPSP or change to in-house solutions consistent with the complexity of the service provided.

1. Prezentare generală

1.1 Referințe

1.2 Cerințe identificate

1.3 Standarde asociate

2. Cerințe identificate

3. Standarde asociate

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/