Source: OJ L, 2024/1505, 30.5.2024Current language: EN
- Digital operational resilience in the financial sector
Oversight framework
- Oversight fees
Article 2 Applicable turnover of critical ICT third-party service providers for the calculation of the oversight fees
Summary What does Article 2 of the Oversight fees say?
This article defines how the turnover of a critical ICT third-party service provider is to be determined for the purposes of calculating oversight fees under Article 3.
At its core, the article establishes what counts as the relevant turnover figure — EU revenues from ICT services provided to financial entities — and sets out a reporting obligation for providers to submit audited figures annually to their Lead Overseer.
Notably, the article also contains a detailed escalation mechanism: where a provider fails to supply sufficiently granular audited figures, the Lead Overseer is required to apply progressively broader turnover measures, up to and including worldwide revenues regardless of client type.
Important points:
- Provide the Lead Overseer with audited turnover figures by 31 December each year, covering revenues from two years prior.
- Where audited figures are incomplete or missing, the Lead Overseer is required to apply broader turnover calculations, which may result in a higher fee base than if accurate figures had been submitted.
- The Lead Overseer is required to convert any revenues reported in non-euro currencies into euro using the average exchange rate published by the European Central Bank for the relevant period.
Springlex's summary of the article, a reading aid, not a substitute for the legal text.
For the purposes of Article 3, the turnover of a critical ICT third-party service provider shall be its revenues generated in the Union from the provision of the ICT services listed in the implementing technical standards adopted pursuant to Article 28(9) of Regulation (EU) 2022/2554 and provided to the financial entities listed in Article 2(1) of Regulation (EU) 2022/2554.
Critical ICT third-party service providers shall provide the Lead Overseer on an annual basis in year n-1 with audited figures specifying the turnover referred to in paragraph 1 for year n-2. Critical ICT third-party service providers shall provide those figures to the Lead Overseer by 31 December each year.
Where the critical ICT third-party service provider does not provide the Lead Overseer with audited figures by the date referred to in paragraph 2 that are limited to or entirely include revenues generated from the provision of services to financial entities listed in Article 2(1) of Regulation (EU) 2022/2554, the Lead Overseer shall consider the turnover generated in the Union from the provision of the ICT services listed in the implementing technical standards adopted pursuant to Article 28(9) of Regulation (EU) 2022/2554 irrespective of the type of clients of the critical ICT third-party service provider.
Where the critical ICT third-party service provider does not provide the Lead Overseer with audited figures by the date referred to in paragraph 2 that are limited to or entirely include revenues generated in the Union from the provision of ICT services referred to in the implementing technical standards adopted pursuant to Article 28(9) of Regulation (EU) 2022/2554, the Lead Overseer shall consider the worldwide turnover generated from the provision of those ICT services.
Where the critical ICT third-party service provider does not provide the Lead Overseer with audited figures by the date referred to in paragraph 2 that are limited to or entirely include revenues generated from the provision of ICT services to financial entities listed in Article 2(1) of Regulation (EU) 2022/2554, and it does not provide the Lead Overseer with audited figures by the date referred to in paragraph 2 that are limited to revenues generated in the Union, the Lead Overseer shall consider the worldwide turnover irrespective of the type of clients of the critical ICT third-party service provider.
Where critical ICT third-party service providers report the revenues in a currency other than the euro, the Lead Overseer shall convert those revenues into euro using the average euro foreign exchange rate applicable to the period during which the revenues were recorded, as published by the European Central Bank.
Relevant recitals
Recital 3 Fee proportionate to applicable turnover
To ensure the fair allocation of oversight fees which, at the same time, reflects the actual administrative effort devoted to each overseen provider, the annual oversight fee should be proportionate to the turnover generated by the ICT third-party service provider in the Union from the provision of the ICT services to financial services clients.
Recital 4 Worldwide revenues by default
To ensure the accuracy of the financial information needed to calculate the applicable turnover, all figures provided by the ICT third-party service providers should be audited. Considering that information on the applicable turnover is necessary for the Lead Overseer to establish the amount of the oversight fee charged to each critical ICT third-party service provider yearly to cover the costs of the oversight, the Lead Overseer should consider the worldwide revenues of ICT third-party service provider generated irrespective of the types of clients in the case where the critical ICT third-party service provider does not provide for tailored information on the revenues generated in the Union from the provision of the ICT services to financial entities.
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