Recital 2 Importance of activities supported by ICT services

The extent to which an ICT service means an ICT service as defined in Article 2, point (13), of Regulation (EU) 2019/881; provided by an ICT third-party service provider means an undertaking providing ICT services; supports critical or important functions means a function, the disruption of which would materially impair the financial performance of a financial entity, or the soundness or continuity of its services and activities, or the discontinued, defective or failed performance of that function would materially impair the continuing compliance of a financial entity with the conditions and obligations of its authorisation, or with its other obligations under applicable financial services law; of the financial entity means a natural or legal person created and recognised as such under the national law of its place of establishment, which may, acting under its own name, exercise rights and be subject to obligations; is considered a crucial element of the criticality assessment in general. Therefore, the importance of the activities of the financial entitiesas defined in Article 2, points (a) to (t) that are supported by ICT services means digital and data services provided through ICT systems to one or more internal or external users on an ongoing basis, including hardware as a service and hardware services which includes the provision of technical support via software or firmware updates by the hardware provider, excluding traditional analogue telephone services; should be integrated in all sub-criteria considered as part of the first step. Consequently, there should not be a distinct quantitative assessment related to the criticality of the functions of the financial entitiesas defined in Article 2, points (a) to (t) as part of the first step of the assessment. Instead, it is appropriate that the ESAsEuropean Supervisory Authority consider the criticality and importance of the functions of the financial entitiesas defined in Article 2, points (a) to (t) supported by ICT services means digital and data services provided through ICT systems to one or more internal or external users on an ongoing basis, including hardware as a service and hardware services which includes the provision of technical support via software or firmware updates by the hardware provider, excluding traditional analogue telephone services; as part of the qualitative second step of the assessment.