Article 2 Scope

Cloud computing service providers are one category of digital infrastructure covered by Directive (EU) 2022/2555. The Union Oversight Framework (‘Oversight Framework’) established by this Regulation applies to all critical ICT third-party service providersmeans an ICT third-party service provider designated as critical in accordance with Article 31;, including cloud computing service providers providing ICT servicesmeans 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; to financial entities, and should be considered complementary to the supervision carried out pursuant to Directive (EU) 2022/2555. Moreover, the Oversight Framework established by this Regulation should cover cloud computing service providers in the absence of a Union horizontal framework establishing a digital oversight authority.

Account information service providersmeans an account information service provider as referred to in Article 33(1) of Directive (EU) 2015/2366;, referred to in Article 33(1) of Directive (EU) 2015/2366, are explicitly included in the scope of this Regulation, taking into account the specific nature of their activities and the risks arising therefrom. In addition, electronic money institutionsmeans an electronic money institution as defined in Article 2, point (1), of Directive 2009/110/EC of the European Parliament and of the Council; and payment institutionsmeans a payment institution as defined in Article 4, point (4), of Directive (EU) 2015/2366; exempted pursuant to Article 9(1) of Directive 2009/110/EC of the European Parliament and of the Council(¹⁴)Directive 2009/110/EC of the European Parliament and of the Council of 16 September 2009 on the taking up, pursuit and prudential supervision of the business of electronic money institutions amending Directives 2005/60/EC and 2006/48/EC and repealing Directive 2000/46/EC (OJ L 267, 10.10.2009, p. 7). and Article 32(1) of Directive (EU) 2015/2366 are included in the scope of this Regulation even if they have not been granted authorisation in accordance Directive 2009/110/EC to issue electronic money, or if they have not been granted authorisation in accordance with Directive (EU) 2015/2366 to provide and execute payment services. However, post office giro institutions, referred to in Article 2(5), point (3), of Directive 2013/36/EU of the European Parliament and of the Council(¹⁵)Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC (OJ L 176, 27.6.2013, p. 338)., are excluded from the scope of this Regulation. The competent authority for payment institutionsmeans a payment institution as defined in Article 4, point (4), of Directive (EU) 2015/2366; exempted pursuant to Directive (EU) 2015/2366, electronic money institutions exempted pursuant to Directive 2009/110/ECmeans an electronic money institution benefitting from a waiver as referred to in Article 9(1) of Directive 2009/110/EC; and account information service providersmeans an account information service provider as referred to in Article 33(1) of Directive (EU) 2015/2366; as referred to in Article 33(1) of Directive (EU) 2015/2366, should be the competent authority designated in accordance with Article 22 of Directive (EU) 2015/2366.

Some financial entities benefit from exemptions or are subject to a very light regulatory framework under the relevant sector-specific Union law. Such financial entities include managers of alternative investment fundsmeans a manager of alternative investment funds as defined in Article 4(1), point (b), of Directive 2011/61/EU; referred to in Article 3(2) of Directive 2011/61/EU of the European Parliament and of the Council(¹⁶)Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers and amending Directives 2003/41/EC and 2009/65/EC and Regulations (EC) No 1060/2009 and (EU) No 1095/2010 (OJ L 174, 1.7.2011, p. 1)., insurance and reinsurance undertakingsmeans a reinsurance undertaking as defined in Article 13, point (4), of Directive 2009/138/EC; referred to in Article 4 of Directive 2009/138/EC of the European Parliament and of the Council(¹⁷)Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (OJ L 335, 17.12.2009, p. 1)., and institutions for occupational retirement provisionmeans an institution for occupational retirement provision as defined in Article 6, point (1), of Directive (EU) 2016/2341; which operate pension schemes which together do not have more than 15 members in total. In light of those exemptions it would not be proportionate to include such financial entities in the scope of this Regulation. In addition, this Regulation acknowledges the specificities of the insurance intermediation market structure, with the result that insurance intermediariesmeans an insurance intermediary as defined in Article 2(1), point (3), of Directive (EU) 2016/97 of the European Parliament and of the Council(34) Directive (EU) 2016/97 of the European Parliament and of the Council of 20 January 2016 on insurance distribution (OJ L 26, 2.2.2016, p. 19).;, reinsurance intermediariesmeans a reinsurance intermediary as defined in Article 2(1), point (5), of Directive (EU) 2016/97; and ancillary insurance intermediariesmeans an ancillary insurance intermediary as defined in Article 2(1), point (4), of Directive (EU) 2016/97; qualifying as microenterprisesmeans a financial entity, other than a trading venue, a central counterparty, a trade repository or a central securities depository, which employs fewer than 10 persons and has an annual turnover and/or annual balance sheet total that does not exceed EUR 2 million; or as small or medium-sized enterprisesmeans a financial entity that is not a small enterprise and employs fewer than 250 persons and has an annual turnover that does not exceed EUR 50 million and/or an annual balance sheet that does not exceed EUR 43 million; should not be subject to this Regulation.

Since the entities referred to in Article 2(5), points (4) to (23), of Directive 2013/36/EU are excluded from the scope of that Directive, Member States should consequently be able to choose to exempt from the application of this Regulation such entities located within their respective territories.

Similarly, in order to align this Regulation to the scope of Directive 2014/65/EU of the European Parliament and of the Council(¹⁸)Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (OJ L 173, 12.6.2014, p. 349)., it is also appropriate to exclude from the scope of this Regulation natural and legal persons referred in Articles 2 and 3 of that Directive which are allowed to provide investment services without having to obtain an authorisation under Directive 2014/65/EU. However, Article 2 of Directive 2014/65/EU also excludes from the scope of that Directive entities which qualify as financial entities for the purposes of this Regulation such as, central securities depositoriesmeans a central securities depository as defined in Article 2(1), point (1), of Regulation (EU) No 909/2014;, collective investment undertakings or insurance and reinsurance undertakingsmeans a reinsurance undertaking as defined in Article 13, point (4), of Directive 2009/138/EC;. The exclusion from the scope of this Regulation of the persons and entities referred to in Articles 2 and 3 of that Directive should not encompass those central securities depositoriesmeans a central securities depository as defined in Article 2(1), point (1), of Regulation (EU) No 909/2014;, collective investment undertakings or insurance and reinsurance undertakingsmeans a reinsurance undertaking as defined in Article 13, point (4), of Directive 2009/138/EC;.