Revamped CSSF outsourcing guidance for the financial sector
On 22 April 2022, the Luxembourg financial regulator (the "CSSF") released Circular 22/806 on outsourcing arrangements (the "Circular"). By means of the Circular, the CSSF adopts and integrates the revised EBA Guidelines on outsourcing arrangements (EBA/GL/2019) (the "EBA Guidelines") and, as far as fund management is concerned, the ESMA Guidelines on outsourcing to cloud service providers (the "ESMA Guidelines").
In addition to incorporating the EBA and ESMA Guidelines into the Luxembourg regulatory framework, the CSSF complements the EBA Guidelines with detailed requirements applicable in Luxembourg and extends their scope of application to a wider range of financial institutions. Last but not least, Part II of the Circular sets out additional requirements for ICT outsourcing, with a specific chapter devoted to cloud-based arrangements. The gold-plating language in the Circular is indicated in italics and bold, thereby calling attention to the Luxembourg-specific requirements.
This newsflash sheds light on the main changes for Luxembourg supervised entities.