The context of the regulation is wide and it relates to the overall digital strategy for the financial sector of the European Union. Its goal is, among others, to develop the competitiveness of the financial sector, introduce better products to the market, and bring financial support for the European economy, including the green transformation.
The COVID-19 pandemic has accelerated the digitization process of many sectors. The European Commission, aware of the need for digital transformation and the challenges that must be faced by, i.a., financial institutions that are particularly vulnerable to digital disruptions and attacks, proposed a package of regulations containing – in addition to the DORA proposal – also proposals for a regulation on crypto asset markets, a pilot system for market infrastructures based on distributed ledger technology (DLT), proposal for a directive to clarify or amend certain related EU financial services rules. These regulations are all aimed at minimizing digital threats to financial institutions and providing them with full digital operational resilience.
According to the EC, threats related to ICT (information and communications technology) constitute a challenge to the operational resilience, efficiency and stability of the EU financial system, and the preventive measures introduced after the 2008 crisis were not accompanied by the development of uniform regulations to counter digital threats. In the period 2019-2020, the Commission carried out public and expert consultations in the Member States, which helped develop the framework for conduct in the field of ICT – in relation to financial services.
The obligations of such entities, which are not micro-enterprises, are to include, i.a.:
Technology companies operating in the European Union are already preparing for the changes that may be required by legislation in the long run. As an external ICT provider that meets the recommendations regarding information processing in public and hybrid clouds by regulated entities, FORDATA is closely monitoring new regulatory proposals at the European level. We are waiting for the final version of the Regulation, and when the new regulations enter into force, we will be ready to continue supporting financial institutions in times of technological transformation.