The guidelines set out expectations on the way in which all financial institutions should manage their internal and external ICT and security risks. In line with previous FCA guidance to firms in the current situation, we encourage firms to particularly focus on the provisions within the Guidelines relating to information security, ICT operations and business continuity to maximise their ability to provide services on an ongoing basis and to limit losses in the event of severe business disruption. A public hearing will take place at the EBA premises on 13 February 2019 from 14:00 to 16:00 UK time. These Guidelines set out expectations on how all financial institutions should manage internal and external ICT and security risks that they are exposed to. The Guidelines integrate and are built on the requirements set out in the EBA’s previous Guidelines on security measures for operational and security risks of payment services, which were published in December 2017 (EBA/GL/2017/17) (the Guidelines on security … Consistent with this further guidance, the FCA will apply reasonable supervisory flexibility when assessing the implementation of the Guidelines given the ongoing Covid-19 crisis. These Guidelines have been developed according to Article 74 of Directive 2013/36/EU, which mandates the EBA to further harmonise institutions’ governance arrangements, processes and mechanisms across the EU, and Article 95 (3) of Directive 2015/2366, which mandates the EBA to issue guidelines with regard to the establishment, implementation and monitoring of security measures for operational and security risks, and Article 16 of Regulation (EU) No 1093/2010. EBA Guidelines on ICT and Security Risk Management, Office for Professional Body Anti-Money Laundering Supervision (OPBAS), Raising procedural issues with our Procedural Officer, Complain about us, the PRA or the Bank of England (the regulators), Review into change and innovation in the unsecured credit market (the Woolard Review), Contact us by web chat, email, phone or post, FCA Innovation – fintech, regtech and innovative businesses, Banks, building societies and credit unions, Electronic money and payment institutions, General insurers and insurance intermediaries, Directory of certified and assessed persons, Coronavirus (Covid-19): Information for firms, eCommerce Directive – changes at the end of the transition period, Securities Financing Transactions Regulation (SFTR), How to report suspected market abuse as a firm or trading venue, How to report suspected market abuse as an individual, Exemptions from short-selling requirements, Market making exemptions and preparing for Brexit, Net short positions reporting and preparing for Brexit, Notification and disclosure of net short positions, Short selling restrictions and prohibitions, Requesting sample transaction reporting data, How to claim compensation if a firm fails, Report information about a payment services or e-money firm, FCA guidance to firms in the current situation, new requirements for operational resilience, Modern Slavery and Human Trafficking Statement. FINAL REPORT ON GUIDELINES ON ICT AND SECURITY RISK MANAGEMENT 5 -to-date inventory of their ICT assets; monitor and manage the life cycle of ICT assets; and implement data and ICT systems backup and restoration procedures. The Guidelines on security measures for operational and security risks under PSD2 (EBA GL/2017/17) issued in 2017 have been fully integrated into these Guidelines and will be repealed once these Guidelines become applicable. Copyright © 2020 FCA. The Guidelines on security measures for operational and security risks (EBA GL/2017/17) have been fully integrated in the EBA Guidelines on ICT and security risk management and will be repealed when the latter enter into force. EBA Guidelines on ICT and Security Risk Management. The FCA is currently consulting on new requirements for operational resilience and we expect to publish our final rules in Q1 2021, including providing further information on the links between our operational resilience policy and the EBA Guidelines. All contributions received will be published following the end of the consultation, unless requested otherwise. Establishing harmonized requirements for ICT and security risk management across the Single Market. The consultation runs until 13 March 2019. Financial institutions should also establish and implement incident and problem management processes. +33 1 86 52 7052 | Firms should also refer to the EBA’s further guidance on the use of flexibility in relation to Covid-19 and the implementation of the Guidelines. These Guidelines respond to the European Commission's FinTech Action plan request for the EBA to develop guidelines on ICT risk management and mitigation requirements in the EU financial sector. The Guidelines are addressed to payment service providers (PSPs), credit institutions and investment firms (all together referred to as, financial institutions in the Guidelines). As a result, sound ICT and security risk management are key for a financial institution to achieve its strategic, corporate, operational and reputational objectives. These Guidelines establish requirements for credit institutions, investment firms and payment service providers (PSPs) on the mitigation and management of their information and communication technology (ICT) and security risks and aim to ensure a consistent and robust approach across the Single market. On 28 November 2019, the European Banking Authority (EBA) published final Guidelines on ICT and security risk management for credit institutions, Capital Requirements Regulation (CRR) investment firms and payment service providers (PSPs) ('the Guidelines'). The consultation clos… All rights reserved. These Guidelines aim to mitigate all ICT risks - internal or external-, including security related risks, for all financial institutions. The FCA has notified the EBA that it intends to comply with these Guidelines. Comments to this consultation can be sent to the EBA by clicking on the "send your comments" button on the consultation page. The Guidelines also cover the management of PSPs’ relationship with payment service users (PSUs) to ensure that users are made aware of the security risks linked to the payment services, and are provided with the tools to disable specific payment functionalities and monitor payment transactions. Due to a growing reliance on ICT for their operational functioning, financial institutions are vulnerable to increased threats from internal and external attacks, including cyber-attacks, or breaches that may arise from inadequate business continuity planning for ICT systems and processes, or poor processes relating to ICT change management. The Guidelines outline the EBA's expectations on how financial institutions (Banks, Insurers, Funds, Credit Unions and Payment Service Providers) across the EU should manage their internal and external risks for ICT and information security, in order to reduce the likelihood and severity of potential incidents, and covers the following critical areas: 1. These Guidelines respond to the European Commission’s FinTech Action plan request for the EBA to develop guidelines on ICT risk management and mitigation requirements in the EU financial sector. The European Banking Authority (EBA) published today its final Guidelines on ICT and security risk management. EBA guidelines on ICT and security risk management In the EBA guidelines for security risk management, the approach is to find a way to address outsourcing, innovation and balance it with compliance. Governance and Strategy (3.2) 2. We welcome feedback from firms to our consultation and their experiences in embedding the requirements of the Guidelines. The increasing digitalisation in the financial sector and the growing interconnectedness across financial institutions and third parties make financial institutions’ operations vulnerable to internal and external ICT and security risks that can potentially compromise their viability. These Guidelines establish requirements for credit institutions, investment firms and payment service providers (PSPs) on the mitigation and management of their information and communication technology (ICT) risks and aim to ensure a consistent and robust approach across the Single market.