Article 4 Conditions under which ICT services that support critical or important functions or a material part thereof may be subcontracted

1. that the ICT third-party service provider means an undertaking providing ICT services; is responsible for the provision of the services provided by the subcontractors;

2. that the ICT third-party service provider means an undertaking providing ICT services; is required to monitor all subcontracted 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; that support 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; or material parts thereof to ensure that its contractual obligations with 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; are continuously met;

3. the monitoring and reporting obligations of the ICT third-party service provider means an undertaking providing ICT services; towards 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; regarding subcontractors that provide 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; that support 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; or material parts thereof;

4. that the ICT third-party service provider means an undertaking providing ICT services; is to assess all risks means the potential for loss or disruption caused by an incident and is to be expressed as a combination of the magnitude of such loss or disruption and the likelihood of occurrence of the incident; associated with the location of the current or potential subcontractors that provide ICT service means an ICT service as defined in Article 2, point (13), of Regulation (EU) 2019/881; that support 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; or material parts thereof, and their parent company and with the location where the ICT service means an ICT service as defined in Article 2, point (13), of Regulation (EU) 2019/881; concerned is provided from;

5. the location of data processed or stored by the subcontractor, where relevant;

6. that the ICT third-party service provider means an undertaking providing ICT services; is to specify in its contract with its subcontractors the monitoring and reporting obligations of that subcontractor towards the ICT third-party service provider means an undertaking providing ICT services;, and where agreed, towards 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;;

7. that the ICT third-party service provider means an undertaking providing ICT services; is to ensure the continuity of the 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; that support 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; throughout the chain of subcontractors in case of failure by an ICT subcontractor to meet its contractual obligations;

8. that the contractual arrangement between the ICT third-party service provider means an undertaking providing ICT services; and its subcontractors contains the requirements on business contingency plans referred to in Article 30(3), point (c), of Regulation (EU) 2022/2554 and specifies the service levels to be met by the ICT subcontractors in relation to those plans;

9. that the contractual arrangement between the ICT third-party service provider means an undertaking providing ICT services; and its subcontractors specifies the ICT security standards means a standard as defined in Article 2, point (1), of Regulation (EU) No 1025/2012 of the European Parliament and of the Council (^29^); Regulation (EU) No 1025/2012 of the European Parliament and of the Council of 25 October 2012 on European standardisation, amending Council Directives 89/686/EEC and 93/15/EEC and Directives 94/9/EC, 94/25/EC, 95/16/EC, 97/23/EC, 98/34/EC, 2004/22/EC, 2007/23/EC, 2009/23/EC and 2009/105/EC of the European Parliament and of the Council and repealing Council decision 87/95/EEC and Decision No 1673/2006/EC of the European Parliament and of the Council (OJ L 316, 14.11.2012, p. 12). and any additional security requirements referred to in Article 30(3), point (c), of Regulation (EU) 2022/2554;

10. that the subcontractor is to grant to 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; and relevant competent and resolution authorities the same rights of access, inspection, and audit as those referred to in Article 30(3), point (e), of Regulation (EU) 2022/2554;

11. that the ICT third-party service provider means an undertaking providing ICT services; is to notify 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; of any material change to subcontracting arrangements;

12. that 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; has the right to terminate the contract with the ICT third-party service provider means an undertaking providing ICT services; when the conditions laid down in either Article 6 of this Regulation or the conditions laid down in Article 28(7) of Regulation (EU) 2022/2554 have been fulfilled.

Changes relative to contractual agreements between 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; and ICT third-party service providers means an undertaking providing ICT services; that provide an ICT service means an ICT service as defined in Article 2, point (13), of Regulation (EU) 2019/881; supporting 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; or material parts thereof, made necessary to comply with this Regulation, shall be implemented in a timely manner and as soon as it is possible. 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; shall document the planned timeline for the implementation.