The new executive order on outsourcing for credit institutions etc. – expected to become effective on 1 July 2020 – introduces stricter requirements for corporate governance and for new and existing outsourcing agreements.
Bird & Bird's outsourcing guide provides an overview of the requirements that companies subject to the Outsourcing Order will need to implement in relation to their governance setup and outsourcing agreements.
On 17 February 2020, the Danish Financial Supervisory Authority (Danish FSA) published an executive order on outsourcing for credit institutions etc. (Outsourcing Order) for consultation.
The Outsourcing Order is expected to become effective on 1 July 2020 and replace the current executive order on outsourcing of significant areas of activity no. 1304 of 25 November 2010. The Outsourcing Order implements the European Banking Authority's (EBA) Outsourcing Guidelines that became effective in September 2019.
The Outsourcing Order introduces revised and new requirements to credit institutions; mortgage-credit institutions; investments firms; investment management companies; savings undertakings; shared data centres; operators of regulated markets; e-money institutions; payment institutions and Danmarks Skibskredit A/S.
The Outsourcing Order is not finally adopted, however, as it is based on the EBA's Outsourcing Guidelines, we do not expect any material changes to be introduced to the main requirements as a result of the consultation.
As the new requirements will become effective on 1 July 2020 companies should – regardless that the Outsourcing Order has not become effective yet - initiate the implementation of the new requirements to ensure compliance by 1 July 2020.