ESAs publication of their Opinion on European Commission’s rejection of the draft RTS on subcontracting under DORA, 7 March 2025

On the 7^th of March 2025, the European Supervisory Authorities (the European Banking Authority, the European Insurance and Occupational Pensions Authority, and the European Securities and Markets Authority – the ESAs) issued an Opinion on the European Commission (EC)’s rejection of the draft Regulatory Technical Standard (RTS) on elements that financial entities must determine and assess when subcontracting ICT services that support critical or important functions under Regulation 2022/2554/EU (DORA). According to the EC, some elements exceeded the powers conferred upon the ESAs by DORA. The ESAs confirmed that the proposed amendments ensure that the draft RTS complies with the mandate set out under DORA: hence, they did not recommend other amendments than those proposed by the EC, and encouraged the latter to adopt the RTS without further delay.