Article 6 Termination of the contract between the financial entity and the ICT third-party service provider

This article directly builds on Articles 4 and 5, which set out the contractual requirements and change notification process for subcontracting arrangements.

Article 6 provides the enforcement mechanism for those requirements: the right for financial entities to terminate their contractual arrangement with an ICT third-party service provider where that provider has acted outside the agreed boundaries.

Essentially, it gives financial entities the contractual exit rights they need when a provider ignores objections, bypasses the notice period, or subcontracts services without authorisation.

Important points:

• Include termination rights in your contractual arrangements with ICT third-party service providers to cover the scenarios set out in this article.
• The three grounds for termination all relate to provider misconduct: ignoring objections to material changes, implementing changes before the notice period expires, or subcontracting services not explicitly permitted under the contract.
• All three termination triggers concern subcontracting that supports critical or important functions, meaning this protection is specifically focused on the highest-risk arrangements.