Source: OJ L, 2024/1505, 30.5.2024Current language: EN
- Digital operational resilience in the financial sector
Oversight framework
- Oversight fees
Article 1 Estimation of the expenditures of the Lead Overseers when performing their oversight duties
Summary What does Article 1 of the Oversight fees say?
This foundational article establishes how the Lead Overseer and the other European Supervisory Authorities must calculate the overall annual costs of their oversight activities, as this figure directly determines the total oversight fees that will be charged to critical ICT third-party service providers.
It sets out the cost categories that must be factored in, covering the full lifecycle of oversight activity from the initial designation of providers as critical through to the governance of the oversight framework itself.
Important points:
- The Lead Overseer and the other European Supervisory Authorities are required to estimate overall annual costs each year, and this estimate is the direct basis for the oversight fees charged.
- The cost estimation must cover both direct and indirect costs, spanning designation, appointment, active oversight, follow-up on recommendations, and framework governance.
- The overall annual costs estimated under this article feed directly into the fee calculation methodology set out in the subsequent articles of this regulation.
Springlex's summary of the article, a reading aid, not a substitute for the legal text.
In each year, the Lead Overseer and the other European Supervisory Authorities shall estimate the overall annual costs that are expected to be incurred for the performance of their oversight duties. The amount of the overall annual costs estimated shall be the basis for determining the overall amount of oversight fees charged.
When estimating the annual overall costs, the Lead Overseer shall take into account the following direct and indirect costs:
costs related to the designation of ICT third-party service providers as critical;
costs related to the appointment of the Lead Overseer;
costs related to the actual oversight of critical ICT third-party service providers, including the following:
costs related to the work carried out by the joint examination team;
costs of advice provided by independent experts;
costs related to the follow-up of the recommendations issued by the Lead Overseers in accordance with Article 35(1), point (d), of Regulation (EU) 2022/2554;
costs related to the governance of the oversight framework.
Relevant recitals
Recital 1 Annual oversight fee
An annual oversight fee should be established to fully cover the Lead Overseer’s and the other European Supervisory Authorities’ necessary expenditure when performing oversight tasks in the context of Regulation (EU) 2022/2554. The annual oversight fee should also cover the estimated costs by competent authorities to whom tasks are delegated by the European Supervisory Authorities.
Recital 2 Principles of annuality and full cost recovery
In line with the principle of annuality and the principle of full cost recovery, the annual oversight fees should be calculated on the basis of the direct and indirect costs estimated by the ESAs to perform their oversight tasks. The annual oversight fees should be adjusted every year to match the estimated costs.
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.
Definition
ICT third-party service provider
Definition
critical ICT third-party service provider
Definition
ICT services
Definition
Lead Overseer