Section 4.1.1 Outsourcing
CSSF Circular 22/806 on outsourcing (as amended by CSSF 25/883) · CSSF 22/806
15. In-Scope Entities shall establish whether an arrangement with a third party falls under the definition of outsourcing. Within this assessment, consideration shall be given to whether the function (or a part thereof) that is outsourced to a service provider is performed on a recurrent or an ongoing basis by the service provider and whether this function (or part thereof) would normally fall within the scope of functions that would or could realistically be performed by In-Scope Entities, even if the In-Scope Entity has not performed this function in the past itself.
16. Where an arrangement with a service provider covers multiple functions, In- Scope Entities shall consider all aspects of the arrangement within their assessment, e.g. if the service provided includes the provision of data storage hardware and the backup of data, both aspects shall be considered together.
17. As a general principle, In-Scope Entities shall not consider the following as outsourcing:
a. a function that is legally required to be performed by a service provider, e.g. statutory audit; b. market information services (e.g. provision of data by Bloomberg, Moody’s, Standard & Poor’s, Fitch); c. global network infrastructures (e.g. Visa, MasterCard); d. clearing and settlement arrangements between clearing houses, central counterparties and settlement institutions and their members; e. global financial messaging infrastructures that are subject to oversight by relevant authorities; f. correspondent banking services; and g. the acquisition of services that would otherwise not be undertaken by the In-Scope Entity (e.g. advice from an architect, legal advice and representation in front of the court and administrative bodies, cleaning, gardening and maintenance of the In-Scope Entity’s premises, medical services, servicing of company cars, catering, vending machine services, clerical services, travel services, post-room services, receptionists, secretaries and switchboard operators), goods (e.g. plastic cards 13, card
13 This does not cover the issuance of payment instruments such as the issuance of credit cards, which is a regulated payment service under the LPS.
CIRCULAR CSSF 22/806 as amended by Circular CSSF 25/883
readers, office supplies, personal computers, furniture) or utilities (e.g. electricity, gas, water, telephone line).