EBA/GL/2019/02 – EBA Guidelines on outsourcing arrangements

In early 2019, The European Banking Authority (EBA) published its revised Guidelines on outsourcing arrangements setting out specific provisions for the governance frameworks of all financial institutions within the scope of the EBA’s mandate with regard to their outsourcing arrangements and related supervisory expectations and processes.

“Each financial institution’s management body remains responsible for that institution and all of its activities, at all times; to this end, the management body should ensure that sufficient resources are available to appropriately support and ensure the performance of those responsibilities, including overseeing all risks and managing the outsourcing arrangements. Outsourcing must not lead to a situation in which an institution becomes an ‘empty shell’ that lacks the substance to remain authorised.”