Assessment methodology for the oversight expectations applicable to critical service providers - consultative report

CPMI Papers  |  No 115  | 
18 December 2013

The then Committee on Payment and Settlement Systems (CPSS) and the International Organization of Securities Commissions (IOSCO) have published for public comment a consultative document on the Assessment methodology for the oversight expectations applicable to critical service providers.

The CPSS-IOSCO Principles for financial market infrastructures, published in April 2012, include an annex (Annex F) on the Oversight expectations applicable to critical service providers. The operational reliability of a financial market infrastructure (FMI) may be dependent on the continuous and adequate functioning of third-party service providers that are critical to an FMI's operations, such as information technology and messaging providers. Although an FMI remains ultimately responsible for its operational reliability, a regulator, supervisor or overseer of an FMI may use Annex F to establish expectations specifically targeted at critical service providers.

The consultative document establishes an assessment methodology and provides guidance for authorities in assessing an FMI's critical service providers against the oversight expectations in Annex F. This assessment methodology also provides guidance to critical service providers in complying with the oversight expectations.

Comments, in particular on the key questions in the assessment methodology, were invited from all interested parties. The oversight expectations and their respective explanatory text just mirror the content of the Annex F of the Principles for financial market infrastructures and were therefore not subject to public consultation. The public consultation period ended on Thursday 20 February 2014.