Recital 80

Importance of collaboration and cooperation


The Oversight Framework largely depends on the degree of collaboration between the Lead Overseerthe European Supervisory Authority appointed in accordance with Article 31(1), point (b) of this Regulation and the critical ICT third-party service provideran ICT third-party service provider designated as critical in accordance with Article 31 delivering to financial entitiesas defined in Article 2, points (a) to (t) services affecting the supply of financial services. Successful oversight is predicated, inter alia, upon the ability of the Lead Overseerthe European Supervisory Authority appointed in accordance with Article 31(1), point (b) of this Regulation to effectively conduct monitoring missions and inspections to assess the rules, controls and processes used by the critical ICT third-party service providersan ICT third-party service provider designated as critical in accordance with Article 31, as well as to assess the potential cumulative impact of their activities on financial stability and the integrity of the financial system. At the same time, it is crucial that critical ICT third-party service providersan ICT third-party service provider designated as critical in accordance with Article 31 follow the Lead Overseer’s recommendations and address its concerns. Since a lack of cooperation by a critical ICT third-party service provideran ICT third-party service provider designated as critical in accordance with Article 31 providing services that affect the supply of financial services, such as the refusal to grant access to its premises or to submit information, would ultimately deprive the Lead Overseerthe European Supervisory Authority appointed in accordance with Article 31(1), point (b) of this Regulation of its essential tools in appraising ICT third-party riskan ICT risk that may arise for a financial entity in relation to its use of ICT services provided by ICT third-party service providers or by subcontractors of the latter, including through outsourcing arrangements, and could adversely impact the financial stability and the integrity of the financial system, it is necessary to also provide for a commensurate sanctioning regime.