European Supervisory Authorities including the European Securities and Markets Authority endorse European Commission amendments to DORA subcontracting technical standards

The European Supervisory Authorities issued an Opinion on the European Commission’s rejection of the draft Regulatory Technical Standard (RTS) on subcontracting under the Digital Operational Resilience Act (DORA), endorsing the Commission’s proposed amendments and recommending no further changes. The rejected draft RTS set out additional elements that financial entities would need to determine and assess when subcontracting ICT services supporting critical or important functions. The Commission rejected it on the basis that certain provisions exceeded the powers DORA confers on the ESAs, and the Opinion confirms the proposed amendments bring the draft RTS back within the DORA mandate. The ESAs urged the European Commission to finalise the adoption of the RTS without further delay as submitted.