Article 2 Ranking of ICT third-party providers in the supply chain

Summary What does Article 2 of the ITS on register of information say?

This article establishes the ranking system used to map the position of ICT third-party service providers within a service supply chain.

It builds directly on the definitions introduced in Article 1 and operationalises the concept of "rank" by setting out a clear numerical logic: the closer a provider is to the financial entity, the lower its rank number.

This creates a structured hierarchy that financial entities must apply across all providers in their supply chain.

Important points:

Assign a numerical rank to each ICT third-party service provider, starting from 1, where rank 1 always belongs to the direct ICT third-party service provider.
Any subcontractor further down the chain must always be assigned a rank higher than 1.
This ranking system is the foundation for how financial entities document and distinguish between direct providers and subcontractors in the register of information.

Springlex's summary of the article, a reading aid, not a substitute for the legal text.

Financial entities shall assign a rank to each ICT third-party service provider. The rank shall be any natural number higher or equal to ‘1’ where the lower the natural number assigned to the rank, the closer the arrangement is to the financial entity.
The rank of the direct ICT third-party service provider in the ICT service supply chain shall always be ‘1’.
The rank of the subcontractor in the ICT service supply chain shall always be higher than ‘1’.

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Springlex and this text is meant purely as a documentation tool and has no legal effect. No liability is assumed for its content. The authentic version of this act is the one published in the Official Journal of the European Union.