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Are there any exemptions that are not considered outsourcing within the European Banking Authority (EBA) guidelines?

'Payment Institutions (<a href="/glossarycollection/payment-institution" style="color:#48277C;" target="_blank" title="Payment Institution"><u>PI</u></a>) should establish whether an arrangement with a third party falls under the definition of outsourcing. Within this assessment, consideration should be given to whether the function (or a part thereof) that is outsourced to a service provider is performed on a recurrent or an ongoing basis by the service provider and whether this function (or part thereof) would normally fall within the scope of functions that would or could realistically be performed by PIs, even if the PI has not performed this function in the past itself.'<br/><br/>

Good examples are outsourced fraud monitoring and customer communications Systems.<br/><br/>

As a general principle, PIs should not consider the following as outsourcing:<br/><br/>

- a function that is legally required to be performed by a service provider, e.g. statutory audit;<br/><br/>

- market information services (e.g. provision of data by Bloomberg, Moody’s, Standard & Poor’s, Fitch);<br/><br/>

- global network infrastructures (e.g. Visa, MasterCard);<br/><br/>

- clearing and settlement arrangements between clearing houses, central counterparties and settlement institutions and their members;<br/><br/>

- global financial messaging infrastructures that are subject to oversight by relevant authorities;<br/><br/>

- correspondent banking services; and<br/><br/>

- the acquisition of services that would otherwise not be undertaken by the PI (e.g. advice from an architect, providing legal opinion and representation in front of the court and administrative bodies, cleaning, gardening and maintenance of the institution’s or payment institution’s premises, medical services, servicing of company cars, catering, vending machine services, clerical services, travel services, post-room services, receptionists, secretaries and switchboard operators), goods (e.g. plastic cards, card readers, office supplies, personal computers, furniture) or utilities (e.g. electricity, gas, water, telephone line).'<br/><br/>

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

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