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What about conflicts of interest from using outsource partners at group level?

'Where outsourcing creates material conflicts of interest, including between entities within the same group or institutional protection scheme, institutions and payment institutions need to take appropriate measures to manage those conflicts of interest.<br/><br/>

When functions are provided by a service provider that is part of a group or a member of an institutional protection scheme or that is owned by the institution, payment institution, group or institutions that are members of an institutional protection scheme, the conditions, including financial conditions, for the outsourced service should be set at arm’s length. However, within the pricing of services synergies resulting from providing the same or similar services to several institutions within a group or an institutional protection scheme may be factored in, as long as the service provider remains viable on a stand-alone basis; within a group this should be irrespective of the failure of any other group entity.'<br/><br/>

Sourcing: <a href="/glossarycollection/european-banking-authority" style="color:#48277C;" target="_blank" title="European Banking Authority"><u>EBA</u></a> Guidelines.

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