Registration and Communication of Subcontracting Agreements
EA BriefFinance Law
27 December, 2023Following a public consultation, Banco de Portugal published Notice BdP 8/2023, which regulates the duties to register and notify the Bank of Portugal of functions outsourced by credit institutions, payment institutions and electronic money institutions. In addition to harmonising the already existing rulings currently in effect, Notice BdP 8/2023 materialises the guidelines issued by the European Banking Authority in February 2019 (EBA/GL/2019/02), which established a set of requirements for managing the risks associated with subcontracting, particularly as regards to essential or important functions.
It should be noted that the rulings concerning the registration of subcontracting agreements are retroactive to the previous 12 months. Therefore, institutions must include in their register all agreements that were in force during those 12 months, including those that have since ceased. In addition, communications regarding the outsourcing of essential or important functions apply to all agreements that enter into force or take effect at least 30 days after the entry into force of this Notice.
The Notice BdP 8/2023 came into force on 19 December 2023 and is available here.
