PROVVEDIMENTO 31 maggio 2023 : Segnalazione in materia di esternalizzazione di funzioni aziendali per gli intermediari vigilati. (23A03337)

Published in the Italian Official Gazette (Gazzetta ufficiale) No. 136 on 13 June 2023, the Bank of Italy Provision of 31 May 2023, provides provisions regarding the reporting on the outsourcing of company functions for supervised intermediaries.
The objective of this reporting is to gather information regarding the outsourcing contracts entered into by supervised intermediaries, the service providers and subcontractors, as well as the type of functions that are outsourced.
The collection of this data aims to analyze and monitor the risks arising from the use of third parties to perform functions, services, and activities of supervised intermediaries, in order to ensure the stability of the intermediaries themselves and the banking and financial system.
Such information is of fundamental importance for the exercise of supervision activities and is particularly relevant for identifying and evaluating situations of service provider concentration, in accordance with European regulations.
The reporting mainly concerns the outsourcing contract, information about the intermediaries who enter into the agreements, and, if applicable, the intermediaries who utilize the services provided by the service providers (users), the service providers to whom the company functions are entrusted, and, if applicable, the subcontractors.
These instructions provide guidance for annually completing the reporting. The reporting is structured to provide data related to six main elements:
– Contract information: this information includes details on the outsourcing contract, such as its duration, renewal and notice periods and the associated cost
– Contract signatory: it is required to specify the intermediaries who signed the outsourcing contract
– User of the contract: the intermediaries using the outsourced providers‘ services must be specified
– Category of the outsourced function: the category or type of the outsourced business function must be indicated
– Service provider: information is required on the outsourced service provider, i.e. the entity or company responsible for providing the services
– Essential or Important Function (FEI or FOI): the outsourced functions must be considered as essential or important. The rationale for this classification must be provided, as well as information on the assessment of the associated risks, the decision-making body involved in the outsourcing decision, the audits performed and planned, the degree of substitutability of the service provider as well as the country where the services are provided and the country where the data are stored
This Provision on the reporting of outsourcing of company functions for supervised intermediaries comes into effect on 14 June 2023, the day following its publication in the Official Gazette.