ESMA publishes Principles for third-party risk supervision
The European Securities and Markets Authority (ESMA) has published 14 principles on third-party risks to support a common EU-wide supervisory culture. The principles address the growing risks observed in recent years in the use of outsourcing, delegation, or other third-party services by supervised firms. The principles provide a common supervisory basis to National Competent Authorities (NCAs) and ESMA, enhancing the robustness of supervisory frameworks. They will help supervised entities understand and manage third-party risks. ESMA will support the implementation of the principles through supervisory discussions and case studies among NCAs. The principles aim to promote a common and effective EU-wide supervisory culture. The publication of the principles is a significant step towards enhancing the supervision of third-party risks in the EU. The principles will be implemented progressively, with ESMA providing support to NCAs. The implementation of the principles will be monitored and reviewed by ESMA. The publication of the principles is a key milestone in ESMA's efforts to address third-party risks. The principles are available on ESMA's website.