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Here is my most read regulatory development in the last week

DORA Delegated Regulations Published: Key Implications for Financial Firms and ICT Providers


The countdown to DORA's implementation continues! The European Commission has just released two Delegated Regulations, filling in crucial details of the Digital Operational Resilience Act (DORA) framework. Here's what you need to know:


Spotlight on Critical ICT Providers and Oversight Fees


The newly published regulations focus on two key areas:


  1. Defining 'Critical': Detailed criteria are now in place for designating ICT third-party providers (CTPPs) as "critical" to the financial sector. This designation comes with heightened regulatory obligations and oversight.

  2. Calculating Oversight Fees: A structured approach has been established for determining the fees that critical CTPPs will pay to their lead overseer.


Effective Date: June 19, 2024


Mark your calendars! These regulations take effect in weeks, giving firms limited time to prepare.

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Impact on Your Business


Here's how these developments could affect you:


ICT Service Providers:

  • Assess Your Status: Carefully review the new criticality criteria. If you fall into this category, be prepared to face more rigorous regulatory scrutiny.

  • Budget for Fees: Understand the oversight fee structure to factor it into your financial planning.


Financial Entities:

  • Review Third-Party Relationships: Given the new criteria, reevaluate your reliance on CTPPs and strengthen your due diligence processes to ensure you work with providers who can meet DORA's standards.

  • Update Contracts: Make sure your contracts with ICT providers are aligned with DORA's requirements for information sharing, incident reporting, and regulatory access rights.


The Bottom Line


These Delegated Regulations are a significant milestone in the rollout of DORA. By understanding the new criteria and fee structures, ICT providers and financial entities can proactively navigate the evolving regulatory landscape and ensure the operational resilience of the European monetary system.


Don't Get Left Behind!


DORA's full implementation is just around the corner. Now is the time to take action. Dive into the details of the Delegated Regulations, assess their impact on your business, and take the necessary steps to ensure compliance.


Stay tuned for further updates and analysis as we monitor DORA's progress.




 
 

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The posts listed on the 'What we think' webpages are our interpretation of regulatory developments we have been reading about. They should not be considered legal, regulatory or other advice. Contact us if you want to understand the impact of public policy, regulation and governance changes for you.

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